A company wants to introduce a new product and has two options to consider. The first option is to produce the product in-house for a yearly fixed cost of $310,000 and a variable cost of $14.70 per unit. The second option is to outsource the product for a yearly fixed cost of $18,000 and a variable cost of $39.40 per unit. At what level of demand that the two options would have the same total costs?

Show a brief calculation steps and explanation. You must put your explanation and answer on the given space below.