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Business, 06.04.2020 18:02 rgilliam3002

Senate Inc. is considering two alternative methods for producing playing cards. Method One involves using a machine with a Fixed Cost ( mainly Depreciation ) of $17,000 and Variable Costs of $1.00 per deck of cards. Method Two 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 , Q , would the two methods provide the same Operating Income ( EBIT )

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