(Solution) - Calculate the number of candles for which the accounting operati -(2025 Original AI-Free Solution)

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Calculate the number of candles for which the accounting operating profit at Dandle?s Candles is the same regardless of the factory choice.
Dandle?s Candles will be producing a new line of dripless 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 $2.50. The cost per unit will be $7.50 in the small factory. The large factory would have fixed cash costs of $2 million and a depreciation expense of $300,000 per year, while those expenses would be $500,000 and $100,000, respectively, in the small factory.