7 The operations manager of a specialist company assembling seabed monitors that record pollution levels had a dilemma. ‘At the moment, we are producing around 40 seabed monitoring stations per year, using what is basically a fixed-position layout. However, as volume increases over the next few years, we could move over to using a cell layout with two cells, one for use assembling monitors for tropical waters and one for colder waters. We know that the fixed costs associated with our current layout are :20,000 per year and the variable cost is :380 per unit. Using a cell layout, we think that the fixed cost per year will be :35,000 per year, but it could be as high as :40,000 or as low as :30,000 per year. We are clearer on the variable cost, which we are fairly sure will be :60 per unit’. How much would the company’s volume need to increase to be certain that the cell layout would be less costly?