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Modem Artifacts can produce keepsakes that will be sold for $76 eachNon-depreciated fixed costs are $1,070 per year and variable costs are $51 per unit.
Modem Artifacts can produce keepsakes that will be sold for $76 eachNon-depreciated fixed costs are $1,070 per year and variable costs are $51 per unit.
a. If the project requires an initial investment of 2,980 and is expected to last for 6 years and the firm pays no taxes, what are the accounting and NPV break-even levels of sales? The initial investment will be depreciated straight-line over years to a final value of zeroand the discount rate is 14%. Round your answers to the nearest whole dollar .)
Accounting break-even sales level =
NPV break-even sales levels =
b. How do your answers change if the firm's tax rate is 40%? (Round your answers to the nearest whole dollar .)
Accounting break-even sales level =
NPV break -even sales levels. =
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