Question
2) Breakeven quantity analysisThe Acme Candy Company is preparing to offer a new product called the Minty Dark Chocolate Bite Bar. The material costs per
2) Breakeven quantity analysisThe Acme Candy Company is preparing to offer a new product called the Minty Dark Chocolate Bite Bar. The material costs per unit of the new candy bar are $0.10 for chocolate, $0.02 for sugar, and $ 0.03 for mint flavoring. Labor costs are estimated to be $0.10 per unit candy bar. Building a production line facility devoted to the new candy bar will have two fixed costs: cost $150,000 paid in full at the start of candy bar production, and operating costs for the facility are estimated to be $200,000 per year. Show all work, starting with listing and labeling given information. In all calculations first show theoretical equations used, and include any assumptions made. (time value of money is not to be considered in this problem).
A) Hand draw and label a complete breakeven analysis graph for the new candy bar product, showing all essential conceptual features of the breakeven analysis, graph does not have to be to a precise scale, but you must label all variables, axes and essential features of your graph.
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