Question: 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
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 $750 in the small factory. 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 $560,000 and $100,000, respectively in the small factory. Calculate the number of candles for which the accounting operating profit at Ivanhoe's Candles is the same regardless of the factory choice. (Round answer to nearest whole units, eg. 152.) At unit sales the two factories would yield the same accounting operating proft. e Textbook and Media Save for Later Attempts: 0 of 2 used Submit
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