You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information:

Sales price per abalone .........= $52.25

Variable costs per abalone ...= $14.60

Fixed costs per year ..........= $580,000

Depreciation per year ........= $65,000

Tax rate .......................................= 21%

The discount rate for the company is 13 percent, the initial investment in equipment is $455,000, and the project’s economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project’s life.

a. What is the accounting break-even level for the project?

b. What is the financial break-even level for the project?