29) The JD Dollar Company has identified two methods of producing playing cards. One method involves using a machine having a fixed cost of $32,000 and variable costs of $1.20 per deck. The other method would use a less expensive machine having a fixed cost of $10,500, but it would require variable costs of $2.60 per deck. If the selling price per deck will be the same under each method, at what level of output would the two methods produce the same net operating income (EBIT)?

Question 29 options:

	15,357.14 units
	16,482.21 units
	17,371.12 units
	21,110.15 units
	None of the above

Question 30 (1 point)

Using information from prior problem if the quantity sold is larger than quantity break-even unit, which method will have larger increase in EBIT and why? What if the quantity sold is smaller than quantity break-even unit, which method will have a larger decrease in EBIT and why?

Question 30 options:

	First method because it has lower variable fixed cost but higher fixed cost
	Second method because it has lower fixed cost but higher variable cost
	First method because it has higher quantity units sold.
	Second method because it has higher selling price.
	First method because it has lower revenue.