Question
sheridans candles will be producing a new line of dripless candles in the coming years and has the choice of producing the candles in the
sheridans candles will be producing a new line of dripless candles in the coming years and has the choice of producing the 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 $6.80 in the small factory . The large factory would have fixed cash costs of $2.10 million and a depreciation expense of $300,000 per year, while those expenses would be $550,000 and $100,000, respectively in the small factory. Calculate the pretax operating cash flow break even point for both factory choices for ivanhoe's candles. the pretax operating cash flow breakeven point for the large factory is _____ units and for the small factory is _____
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started