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Category > Business & Finance Posted 02 Aug 2017 My Price 12.00

Calculate the accounting operating profit

Calculate the accounting operating profit breakeven point for both factory choices for Dandle’s Candles.
Dandle’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 $2.50. The cost per unit will be $7.50 in the small factory. The large factory would have fixed cash costs of $2 million and a depreciation expense of $300,000 per year, while those expenses would be $500,000 and $100,000, respectively, in the small factory.

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Status NEW Posted 02 Aug 2017 04:08 PM My Price 12.00

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