The AZ Company manufactures knives. The company is currently producing at 80% capacity.
AZ is able to produce its knife for a variable cost of $7.55 per knife,
but there is also a total fixed cost of $5,550.88 in producing these knives
An outside vendor has approached AZ with an offer to sell 5,000 of its knives for $7.77,
which will eliminate 40.00% of AZ's fixed costs.
What will be the quantity where either manufacturing or purchasing the knives
will result in the same total cost?