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Subject:
Finance
Category: Business and Money Asked by: csalmon74-ga List Price: $2.00 |
Posted:
07 Apr 2005 22:14 PDT
Expires: 08 Apr 2005 22:39 PDT Question ID: 506613 |
If I have two methods for producing playing cards and one method involves using a machine having a fixed cost of $10,000 and variable costs of $1.00 per deck of cards. The other method would use a less expensive machine (fixed cost = $5,000), but it would require greater variable costs ($1.50 per deck of cards). If the selling price per deck of cards will be the same under each method, at what level of output will the two methods produce the same net operating income?? |
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There is no answer at this time. |
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Subject:
Re: Finance
From: answerfan-ga on 07 Apr 2005 22:55 PDT |
Simply solve this equation and you will get the answer: say X stands for total units of output, $a stands for the unit price $aX - (10,000 + X) = $aX - (5000 + $1.5X) The answer is 10,000 units |
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