Question: Senate Inc. is considering two alternative methods for producing playing cards. Method 1 involves using a machine with a fixed cost ( mainly depreciation )
Senate Inc. is considering two alternative methods for producing playing cards. Method involves using a machine with a fixed cost mainly depreciation of $ and variable costs of $ per deck of cards. Method would use a less expensive machine with a fixed cost of only $ but it would require a variable cost of $ 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
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