The Congress Company Has Identified Two Methods for Producing Playing

question 36

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 with greater variable costs ($1.50 per deck of cards) .If the selling price per deck of cards is 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

---

Definitions:

Mental Disorders

A wide range of conditions that affect mood, thinking, and behavior, often causing distress or impairment in functioning.

Ethnic Groups

Socially defined categories of people who identify with each other based on shared cultural, ancestral, or national experiences.

Ethnic Psychoses

Mental disorders or psychopathologies that are believed to be confined to specific cultural or ethnic groups.

Childrearing

The process of raising and nurturing children from infancy through to adulthood.