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You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalor Variable costs
You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalor Variable costs per abalone Fixed costs per year Depreciation per year Tax rate = $35.60 $6.70 $381 , 000 = $126,000 The discount rate for the company is 15 percent, the initial investment in equipment is $882,000, and the projects economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project's life a. What is the accounting break-even level for the project? (Do not round intermediate calculations and round your answer to the nearest whole number (e.g., 32).) Accounting break-even level units b. What is the financial break-even level for the project? (Do not round intermediate calculations and round your answer to the nearest whole number (e.g., 32).) Financial break-even level units
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