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An operations manager is about to place an order for a specific part required for the assembly of a final product. There are two companies

An operations manager is about to place an order for a specific part required for the assembly of a final product. There are two companies that offer this part: Company A and Company B. Fixed ordering cost from Company A is $40,000 and fixed ordering cost from Company B is $50,000. Each part ordered from Company A costs $50, whereas each part ordered from Company B costs $40. What is the indifference point (The order quantity that make two options equivalent)?
40,000 units
1,000 units
100 units
10,000 units
50,000 units
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