The Congress Company Has Identified Two Methods for Producing Playing

question 21

Multiple Choice

The Congress Company has identified two methods for producing playing cards. One method involves using a machine having a fixed cost of $10,000 and variable costs of $1.00 per deck of cards. The other method would use a less expensive machine (fixed cost = $5,000) , but it would require greater variable costs ($1.50 per deck of cards) . If the selling price per deck of cards will be the same under each method, at what level of output will the two methods produce the same net operating income (EBIT) ?

• A) 5,000 decks
• B) 10,000 decks
• C) 15,000 decks
• D) 20,000 decks
• E) 25,000 decks

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Definitions:

Virtual Community

An association of people, scattered across the country, continent, or planet, who communicate via computer and modem about a subject of common interest.

Flexible Self

The ability of an individual to adapt their identity and personal narratives to cope with various social situations and challenges.

Cultural Relativism

Is the belief that all cultures have equal value.

Ethnocentrism

The tendency to judge other cultures exclusively by the standards of one’s own.