Question: 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