Parker Brothers has two methods for producing one of their new games. One method involves...
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Parker Brothers has two methods for producing one of their new games. One method involves using a machine having a fixed cost of $32,000 and variable costs of $4.25 per deck of cards. The other method would use a less expensive machine (fixed cost = $12,000), but it would require greater variable costs ($5.50 per deck of cards). If the selling price per game will be the same under each method, at what level of output will the two methods produce the same net operating income (EBIT)? 17,800 games 15,200 games 17,300 games 14,500 games 16,000 games
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