Senate Inc

question 53

Multiple Choice

Senate Inc.is considering two alternative methods for producing playing cards.Method 1 involves using a machine with a fixed cost (mainly depreciation) of $12,000 and variable costs of $1.00 per deck of cards.Method 2 would use a less expensive machine with a fixed cost of only $5,000,but it would require a variable cost of $1.50 per deck.The sales price per deck would be the same under each method.At what unit output level would the two methods provide the same operating income (EBIT) ?

• A)12,600
• B)14,000
• C)15,400
• D)16,940
• E)18,634

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Definitions:

Same Format

The term same format could refer to maintaining consistent style or structure in data representation or in document layout.

End-of-List Sentinel

An End-of-List Sentinel is a special value used to mark the end of a list, often used in data structures to signal the termination of iterations.

Special Pointer

A term not commonly used in standard programming documentation, possibly referring to a pointer with a specific function or capability beyond normal referencing. NO.

Pointers

Variables that store memory addresses, typically of another variable.