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Problem 1 0 - 1 2 Break - even analysis Modern Artifacts can produce keepsakes that will be sold for $ 2 0 0 each.
Problem Breakeven analysis
Modern Artifacts can produce keepsakes that will be sold for $ each. Nondepreciation fixed costs are $ per year, and variable costs are $ per unit. The initial investment of $ will be depreciated straightline over its useful life of five years to a final value of zero, and the discount rate is
a What is the accounting breakeven level of sales if the firm pays no taxes?
b What is the NPV breakeven level of sales if the firm pays no taxes?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole number.
c What is the accounting breakeven level of sales if the firm's tax rate is
d What is the NPV breakeven level of sales if the firm's tax rate is
Note: Do not round intermediate calculations. Round your final answer to thenearest whole number.
e What is the degree of operating leverage for the firm for the NPV breakeven points when the tax rate is and when the tax rate is
Note: Round intermediate calculation to the nearest whole number. Round your answers to decimal places.
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