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A company is producing a premium chocolate cake to be distributed to supermarkets and restaurants. The sales price for each cake is $ 3 5

A company is producing a premium chocolate cake to be distributed to supermarkets and restaurants. The sales price for each cake is $35, the variable costs per unit is $7.50, total annual fixed costs is $350,000, the tax rate is 24%, and the discount rate is 12%. The initial investment in baking equipment is $630,000 and it has 7 years useful life, which is the same as the project life. The company is using a simplified straight-line depreciation method.
a) Calculate the accounting break-even point for the project.
b) Calculate the financial break-even point for the project.

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