You have an idea to sell handmade porcelain plates. The only investment needed is a furnace (oven) that you can buy for $20,000. The furnace assumed to last for 8 years and it will be fully depreciated by the straight-line method over its economic life. Other fixed costs amount to $1,000 per year. Taxes are 30 percent. Your discount rate is 10 percent. i. What is the accounting break-even point if each plate costs $3 to make and you can sell plates for $12 apiece? ii. Calculate the financial break-even point. Now assume that your plates carry a logo of Disney and you need to pay an annual royalty to Disney of $10,000 per year. This annual royalty, payable at the beginning of each year, is independent of number of units produced and sold. Recalculate the accounting break-even. You have an idea to sell handmade porcelain plates. The only investment needed is a furnace (oven) that you can buy for $20,000. The furnace assumed to last for 8 years and it will be fully depreciated by the straight-line method over its economic life. Other fixed costs amount to $1,000 per year. Taxes are 30 percent. Your discount rate is 10 percent. i. What is the accounting break-even point if each plate costs $3 to make and you can sell plates for $12 apiece? ii. Calculate the financial break-even point. Now assume that your plates carry a logo of Disney and you need to pay an annual royalty to Disney of $10,000 per year. This annual royalty, payable at the beginning of each year, is independent of number of units produced and sold. Recalculate the accounting break-even