Question: Please help me answer this question. Pharoah's Candles will be producing a new line of dripless candles in the coming years and has the choice

Please help me answer this question.
Please help me answer this question. Pharoah's Candles will be producing a

Pharoah'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 $7.00 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 $590,000 and $100,000, respectively in the small factory. Calculate the accounting operating profit break-even point for both factory choices for Pharoah's Candles. (Round answers to nearest whole units, e.s. 152.) The accounting break-even point for large factory is units and for small factory is

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!