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MMM Corp makes crystal ball artwork pieces Each crystal ball artwork piece can be sold for $200. The materials cost for a the crystal ball
MMM Corp makes crystal ball artwork pieces Each crystal ball artwork piece can be sold for $200. The materials cost for a the crystal ball artwork piece is $140. The fixed costs incurred each year for factory upkeep and administrative expenses are $1,700,000. The machinery costs $1,300,000 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 number of crystal ball artwork pieces sold? Accouting Break-even crystal ball artwork pie b. What is the NPV break-even level of sales assuming a tax rate of 35%, a 10-year project life, and a discount rate of 12%? NPV Break even level of sales crystal ball artwork pie
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