Two methods produce the same net operating income

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Reference no: EM131889847

The Congress Company has identified two methods for producing playing cards. One method involves using a machine having a fixed cost of $ 11,226 and variable costs of $ 0.40 per deck of cards. The other method would use a less expensive machine (fixed cost = $ 6,343 ), but it would require greater variable costs ($ 1.04 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? Show your answer to the nearest whole number, do not include commas in your answer.

Reference no: EM131889847

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