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Question 29 Canyon Buff Corp. makes leather wallet. Each wallet can be sold for $100. The materials cost for a wallet is $40. The selling,
Question 29 Canyon Buff Corp. makes leather wallet. Each wallet can be sold for $100. The materials cost for a wallet is $40. The selling, general and administrative expenses are $10,000 each year. The firm needs to purchase a new piece of equipment in Year 0 before the production of wallet. The equipment costs $250,000 and is depreciated straight-line over 5 years to a salvage value of zero. For simplicity, make the following assumptions alvage vS10,000 each yes points save ang changes in net working capital are zeros for each year (from Year Oto Year 5). Revenue and cost of sales remain the same over the 5-year period. The accounting break-even level of quantity sold is_ _ Assume a tax rate of 30 percent, a 5-year project life, and a discount of 16 percent? Instruction: Type ONLY your numerical answer, NO comma sign, and round it to the nearest integer
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