Reference no: EM133157696

Question - Sunland'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 $3.60. The cost per unit will be $7.50 in the small factory. The large factory would have fixed cash costs of $1.90 million and a depreciation expense of $300,000 per year, while those expenses would be $540,000 and $100,000, respectively, in the small factory.

Calculate the pretax operating cash flow break-even point for both factory choices for Sunland's Candles.

The pretax operating cash flow breakeven point for the large factory is (enter a number of units) units and for the small factory is.