Author Question: Congress Company has identified two methods for producing playing cards. One method involves using a ... (Read 335 times)

rissygurl1124 · **on:** Aug 7, 2023

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?

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1,300

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1,667

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2,000

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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)?

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10,000 decks

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15,000 decks

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20,000 decks

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25,000 decks

RodrickHac · **Reply #1 on:** Aug 7, 2023

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