Question
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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