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Twilight Candles will be producing a new line of dripless candles. If the large factory is chosen, the cost per unit to produce each candle
Twilight Candles will be producing a new line of dripless candles. If the large factory is chosen, the cost per unit to produce each candle will be $2.48, while the cost per unit will be $6.84 for the small factory. The large factory would have fixed cash costs of $2.4 million and a depreciation expense of $300,000 per year, while those expenses would be $520,000 and $100,000 in the small factory. Calculate the accounting operating profit break-even point for both factory choices for Twilight Candles.
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