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How do I get the Financial break even level?. This window shows your responses and what was marked correct and incorrect from you You are
How do I get the Financial break even level?.
This window shows your responses and what was marked correct and incorrect from you You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone = $44.00 Variable costs per = $10.95 abalone Fixed costs per year = $474,000 Depreciation per year = $116,000 Tax rate = 25% ded The discount rate for the company is 17 percent, the initial investment in equipment is $928,000, and the project's economic life is 8 years. Assume the equipment is depreciated on a straight-line basis over the project's life and has no salvage value. a. What is the accounting break-even level for the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the financial break-even level for the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 17,851.74 units Accounting break-even level Financial break-even level b. 594,773.37 unitsStep by Step Solution
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