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Modern Artlfacts can produce keepsakes that will be sold for $ 2 2 0 each. Nondepreclation fixed costs are $ 3 , 8 0 0

Modern Artlfacts can produce keepsakes that will be sold for $220 each. Nondepreclation fixed costs are $3,800 per year, and
varlable costs are $200 per unit. The initial investment of $10,000 will be depreclated straight-line over its useful life of five years to a
final value of zero, and the discount rate is 10%.
a. What is the accounting break-even level of sales if the firm pays no taxes?
b. What is the NPV break-even level of sales If the firm pays no taxes?
Note: Do not round Intermedlate calculatlons. Round your final answer to the nearest whole number.
c. What is the accounting break-even level of sales If the firm's tax rate is 20%?
d. What is the NPV break-even level of sales if the firm's tax rate is 20%?
Note: Do not round Intermedlate calculatlons. Round your flnal answer to the nearest whole number.
e. What is the degree of operating leverage for the firm for the NPV break-even points when the tax rate is 0% and when the tax
rate is 20%?
Note: Round Intermedlate calculatlon to the nearest whole number. Round your answers to 2 declmal places.
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