Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Modern Artifacts can produce keepsakes that will be sold for $50 each. Nondepreciation fix...

Modern Artifacts can produce keepsakes that will be sold for $50 each. Nondepreciation fixed costs are $2,900 per year, and variable costs are $30 per unit. The initial investment of $3,000 will be

Modern Artifacts can produce keepsakes that will be sold for $50 each. Nondepreciation fixed costs are $2,900 per year, and variable costs are $30 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 14%.

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 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 units
c. What is the accounting break-even level of sales if the firm’s tax rate is 40%? (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 firm’s tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

NPV break-even level of sales units

Jul 05 2021 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions