Modern Artifacts can produce keepsakes that will be sold for $80 each. Nondepreciation fixed costs are $1,200 per year, and variable costs are $60 per unit. The initial investment of $3,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 10%. a. What is the accounting break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Acounting break-even level of sales 90 units b. What is the NPV break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.) NPV break-even level of sales 100 units c. What is the accounting break-even level of sales if the firmâs tax rate is 35%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Acounting break-even level of sales units d. What is the NPV break-even level of sales if the firmâs tax rate is 35%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) NPV break-even level of sales units
Modern Artifacts can produce keepsakes that will be sold for $80 each. Nondepreciation fixed costs are $1,200 per year, and variable costs are $60 per unit. The initial investment of $3,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 10%. a. What is the accounting break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Acounting break-even level of sales 90 units b. What is the NPV break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.) NPV break-even level of sales 100 units c. What is the accounting break-even level of sales if the firmâs tax rate is 35%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Acounting break-even level of sales units d. What is the NPV break-even level of sales if the firmâs tax rate is 35%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) NPV break-even level of sales units
Related questions
| Modern Artifacts can produce keepsakes that will be sold for $70 each. Nondepreciation fixed costs are $2,300 per year and variable costs are $42 per unit. |
| a. | If the project requires an initial investment of $6,000 and is expected to last for 5 years and the firm pays no taxes. The initial investment will be depreciated straight-line over 5 years to a final value of zero, and the discount rate is 10%. What are the accounting and NPV break-even levels of sales? (Do not round intermediate calculations. Round your answers to the nearest whole number.) |
| Accounting break-even levels of sales | units |
| NPV break-even levels of sales | units |
| b. | What will be the accounting and NPV break-even levels of sales, if the firm's tax rate is 40%? (Do not round intermediate calculations. Round your answers to the nearest whole number.) |
| Accounting break-even levels of sales | units |
| NPV break-even levels of sales | units |
| Modern Artifacts can produce keepsakes that will be sold for $70 each. Nondepreciation fixed costs are $2,300 per year and variable costs are $42 per unit. |
| a. | If the project requires an initial investment of $6,000 and is expected to last for 5 years and the firm pays no taxes. The initial investment will be depreciated straight-line over 5 years to a final value of zero, and the discount rate is 10%. What are the accounting and NPV break-even levels of sales? (Do not round intermediate calculations. Round your answers to the nearest whole number.) |
| Accounting break-even levels of sales | units |
| NPV break-even levels of sales | units |
| b. | What will be the accounting and NPV break-even levels of sales, if the firm's tax rate is 40%? (Do not round intermediate calculations. Round your answers to the nearest whole number.) |
| Accounting break-even levels of sales | units |
| NPV break-even levels of sales | units |
