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Senate Inc. is considering two alternative methods for producing playing cards. Method involves using a machine with a fixed cost (mainly depreciation) of $12,500 and
Senate Inc. is considering two alternative methods for producing playing cards. Method involves using a machine with a fixed cost (mainly depreciation) of $12,500 and variable costs of $1.00 per deck of cards. Method 2 would use a less expensive machine deck with a fixed cost of only $5,000, but it would require a variable cost of $1.50 per 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)? 17,100 15,300 15,000 12,750 13,500
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