Question
Modern Artifacts can produce keepsakes that will be sold for $60 each. Nondepreciation fixed costs are $1,400 per year, and variable costs are $30 per
Modern Artifacts can produce keepsakes that will be sold for $60 each. Nondepreciation fixed costs are $1,400 per year, and variable costs are $30 per unit. The initial investment of $5,00 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 12%.
a. What is the accounting break-even level of sales if the firm pays no taxes? round to nearest whole number
Accounting break-even level of sales = how many units?
b. What is the NPV break-even level pf sales if the firm pays no taxes? Nearest whole number
NPV break-even level of sales= how many units?
c. What is the accounting break-even level of sales if the firms tax rate is 20%? Nearest whole number
Accounting break -even level of sales= HOW MANY UNITS?
d. What is the NPV break-even level of sales if the firms tax rate is 20%? Nearest whole number
NPV break- even level of sales= how many units?
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