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problem: The A. J. Croft Company has identified 2 methods for producing playing cards. One method involves using a machine having a fixed cost of dollar 10,000 and variable costs of dollar 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 2 methods produce the same net operating income?

[A] 15,000 decks

[B] 20,000 decks

[C] 25,000 decks

[D] 5,000 decks

[E] 10,000 decks

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