A Component can be produced with equal facility on either a capstan lathe or a single-spindle automatic. Find the break-even quantity QE if the the following data is given.
Capstan Lathe Automatic
(i) Tooing Cost £4.00 £4.00
(ii) Cost of Cams _ £15.00
(iii) Material Cost/Component £0.025 £0.025
(iv) Operating Labour Cost £0.25/h £0.10/h
(v) Cycle Time/Component 4 min 1 min
(vi) Setting up Labour Cost £0.40/h £0.40/h
(Setting and Operating) 300% of 1000%