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Question 5 (1 point) Danny's Diamonds makes synthetic diamonds. Each diamond can be sold for $100. The materials cost $30 for a standard diamond. The
Question 5 (1 point) Danny's Diamonds makes synthetic diamonds. Each diamond can be sold for $100. The materials cost $30 for a standard diamond. The fixed costs incurred each year for factory upkeep and administrative expenses are $200,000. The machinery costs $1 million and is depreciated over a straight line over 10 years to a salvage value of zero. 6 What is the accounting break-even level of sales in terms of number of diamonds sold? 1) 6,104 12 2) 5.676 3 15 3) 3,560 4) 4.286
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