Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need answer B for question 5 pls 5 Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $140.

Need answer B for question 5 pls

image text in transcribed
5 Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $140. The material cost of a standard diamond is $40. The fixed costs incurred each year for factory upkeep and administrative expenses are $210,000. The machinery costs $1.8 million and is depreciated straight-line over 10 years to a salvage value of zero. 0.9 points a. What is the accounting break-even level of sales in terms of the number of diamonds sold? Note: Do not round Intermediate calculations. b. What is the NPV break-even level of sales assuming a tax rate of 21%, a 10-year project life, and a discount rate of 14%? Note: Do not round Intermediate calculations. Round your answer up to the nearest whole unit. eBook a. Break-even sales 3,900 diamonds per year b. Break-even sales diamonds per year Print

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach

Authors: Jeffrey Slater, Mike Deschamps

14th Edition

0134729315, 978-0134729312

More Books

Students also viewed these Accounting questions

Question

5. How quickly can we manage to collect the information?

Answered: 1 week ago

Question

3. Tactical/strategic information.

Answered: 1 week ago

Question

3. To retrieve information from memory.

Answered: 1 week ago