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Dandys Candies will be producing a new line of sugarless chocolate bars. It has the choice of producing in a Large Factory with a small

Dandys Candies will be producing a new line of sugarless chocolate bars. It has the choice of producing in a Large Factory with a small number of workers, or a Small Factory with a large number of workers. Each candy bar will sell for $9. If the large factory is chosen, variable cost per unit will be $2.50, whereas it will be $7.50 in the small factory. The large factory would have fixed costs of $2mm and the small factory would have $500,000.

Calculate the operating break-even point for the Large Factory

A.

307,692

B.

204,658

C.

237,829

D.

299,451

E.

333,333

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