Senate Inc

question 12

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 $17,000 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) 24,960
• B) 28,080
• C) 24,000
• D) 26,880
• E) 28,320

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Definitions:

Time and Space

Concepts referring to the dimensions in which events occur and are perceived, often considered in planning and design.

Meeting Respect

The practice of showing consideration and professionalism in meetings, including punctuality, attentiveness, and constructive participation.

Visual Richness

The quality of containing diverse and engaging visual elements, such as images, graphics, and animations, to enhance the appeal and understanding of content.

Confidence

A feeling of self-assurance arising from an appreciation of one's own abilities or qualities.