View Policies Current Attempt in Progress Ivanhoe's Candles will be producing a new line of dripless candles in the coming years and has the choice of producing the candles in a large factory with a small number of workers or a small factory with a large number of workers. Each candle will be sold for $10. If the large factory is chosen, the cost per unit to produce each candle will be $3.00. The cost per unit will be $7.50 in the small kactory. The large factory would have fixed cash costs of $1.8 million and a depreciation expense of $300,000 per year, while those expenses would be $490,000 and $100,000, respectively in the small factory. Calculate the accounting operating profit break-even point for both factory choices for Ivanhoe's Candles. (Round answers to nearest whole units, e.g. 152.) The accounting break-even point for large factory is units and for small factory is
View Policies Current Attempt in Progress Ivanhoe's Candles will be producing a new line of dripless candles in the coming years and has the choice of producing the candles in a large factory with a small number of workers or a small factory with a large number of workers. Each candle will be sold for $10. If the large factory is chosen, the cost per unit to produce each candle will be $3.00. The cost per unit will be $7.50 in the small kactory. The large factory would have fixed cash costs of $1.8 million and a depreciation expense of $300,000 per year, while those expenses would be $490,000 and $100,000, respectively in the small factory. Calculate the accounting operating profit break-even point for both factory choices for Ivanhoe's Candles. (Round answers to nearest whole units, e.g. 152.) The accounting break-even point for large factory is units and for small factory is
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 2PB: Mortech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...
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