Congress Company has identified two methods for producing playing ...

[rissygurl1124]

Question 1

Canada Manu Corp. (CMC) reports total fixed costs of $20,000. If its average price per unit is $20 and its variable costs per unit are $8, what is CMC’s break-even unit production?

◦

1,300

◦

1,667

◦

2,000

◦

2,815

Question 2

Congress Company has identified two methods for producing playing cards. One method involves using a machine having a fixed cost of $13,000 and variable costs of $1.20 per deck of cards. The other method would use a less expensive machine (fixed cost = $7,000), but with greater variable costs ($1.80 per deck of cards). If the selling price per deck of cards is the same under each method, at what level of output will the two methods produce the same net operating income (EBIT)?

◦

10,000 decks

◦

15,000 decks

◦

20,000 decks

◦

25,000 decks

[RodrickHac]

A FREE account is required to view all solutions! Click to Register

Login with Facebook Login with Google Login with Email

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 35% of students answer this correctly

[rissygurl1124]

Great answer, keep it coming

[tranoy]

Thanks for the timely response, appreciate it