I'm studying management accounting. What is the point of indifference? Help me!?

Question

Point of indifference = difference in fixed cost/ difference in variable cost * something or is it difference???

Answer 1

At that specific situation, you are going to spend the same amount regardless of what options you choose.

At point of indifference, Fixed cost of A + Variable cost of A * factor X = Fixed cost of B + Variable cost of B * factor X

Solve the 2 equations (Find X). A and B are the options.