You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information:

Sales price per abalone	=	$35.90
Variable costs per abalone	=	$7.00
Fixed costs per year	=	$384,000
Depreciation per year	=	$129,000
Tax rate	=	35%

The discount rate for the company is 15 percent, the initial investment in equipment is $903,000, and the projects economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the projects 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