The indifference point will be 466.67 units
If the quantity is less than 466.67 units, machine A has a lower total cost (higher profit). Above 466.67 units, production B is more profitable.
The indifference point is the volume level at which the total cost, and hence profit, is equal under both cost structures. If your company is operating at this volume level, it doesn't matter which alternative you use because the income is the same in both cases. At the cost indiscriminate point, the total costs (fixed and variable) associated with the two alternatives are equal.
There can be two ways to do one thing, or two alternatives, say two ways of production. Certain activity levels are also possible. One manufacturing method is better than another and vice versa.
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