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Modern Artifacts Inc. can produce keepsakes that will be sold for $80 each. Non-depreciation fixed costs are $1,000 per year, and variable costs are $60
Modern Artifacts Inc. can produce keepsakes that will be sold for $80 each. Non-depreciation fixed costs are $1,000 per year, and variable costs are $60 per unit. The initial investment is of $3,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero. The discount rate is 10%.
- What is the accounting break-even analysis if the firm pays no taxes?
- What is the NPV break-even analysis if the firm pays no taxes?
- What is the accounting B/E level of sales if the firm has a 40% tax rate?
- What is the NPV B/E level of sales if the firms tax rate is 40%?
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