ABC company makes synthetic diamonds by treating carbon. Each diamond can be sold for $120. The materials cost for a standard diamond is $40. The fixed costs incurred each year for factory upkeep and administrative expenses are $212,000. The machinery costs $2.2 million and is depreciated straight-line over 10 years to s salvage value of zero.

Questions:

1. What is the accounting break-even level of sales in terms of number of diamonds sold? (DO NOT ROUND INTERMEDIATE CALCULATIONS.)
2. What is the NPV break-even level of diamonds sold per year assuming a tax rate of 21%, a 10 year project life, and a discount rate of 12%. (DO NOT ROUND INTERMEDIATE CALCULATIONS. ROUND ANSWER TO THE NEAREST WHOLE NUMBER.)