(Related to Checkpoint 13.4)(Break-even analysis)The Marvel Mfg. Company is considering whether or not to construct a new robotic production facility. The cost of this new facility is

$582000

and it is expected to have a six-year life with annual depreciation expense of

$97,000

and no salvage value. Annual sales from the new facility are expected to be

1,990

units with a price of

$1030

per unit. Variable production costs are

$630

per unit, and fixed cash expenses are

$78,000

per year.

a. Find the accounting and the cash break-even units of production.

b. Will the plant make a profit based on its current expected level of operations?

c.Will the plant contribute cash flow to the firm at the expected level of operations?