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

Comprehend the concept of lead times and their impacts on the scheduling of production and procurement.

Recognize the key components and inputs necessary for a gross material requirements plan.

Learn to calculate net requirements for components based on inventory levels and product demand.

Identify the significance of accurately determining time-phased schedules in MRP.

---

Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and coordinating information.

Serotonin Dysregulation

A condition wherein the levels, function, or balance of serotonin, a key neurotransmitter in the brain, are abnormal, potentially impacting mood, emotion, and behavior.

Amygdala Dysfunction

Abnormal functioning of the amygdala, a part of the brain involved in emotional processing, which can affect behavior, mood, and responses to stressful stimuli.

Gray Matter

A component of the central nervous system consisting of neuronal cell bodies, dendrites, and unmyelinated axons, crucial for processing information.