The Poker Company has identified two methods for producing playing cards. One method involves using a machine having a f

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The Poker Company has identified two methods for producing
playing cards. One method involves using a machine having a fixed
cost of $10,000 and variable costs of $2.00 per deck of cards. The
other method would use a less expensive machine (fixed cost =
$5,000), but it would require greater variable costs ($3.00 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?
Select one:
a. 5,000 decks
b. 10,000 decks
c. 15,000 decks
d. 20,000 decks
e. 25,000 decks