Dime a Dozen makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $40. The fixed costels incurred each year for factory upkeep and administrative expenses are $200,000. The machinery costs $1 million and is depreciated straight-line over 10 years to a salvage value of zero.

a. What is the accounting breakeven level of sales in terms of the number of diamonds sold?

b. What is the NPV breakeven level of sales assuming a tax rate of 21%, a 10 year project life, and a discount rate of 12%?

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $40. The fixed costs incurred each year for factory upkeep and administrative expenses are $200.000. The machinery costs $1 million and is depreciated straight-line over 10 years to a salvage value of zero. a. What is the accounting break-even level of sales in terms of the number of diamonds sold? Note: Do not round intermediate calculations. b. What is the NPV break-even level of soles assuming a tax rate of 21%, a 10 -year project life, and a discount rate of 12% ? Note: Do not round intermediate calculations. Round your answer up to the nearest whole unit