Accounting break-even level of sales

Reference no: EM13791877

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $140.00; the materials cost for a standard diamond is $40.00; the fixed costs incurred each year for factory upkeep and administrative expenses are $216,000; the machinery costs $2.5 million and is depreciated straight-line over 10 years to a salvage value of zero.

A) What is the accounting break-even level of sales in terms of number of diamonds sold?

B) What is the NPV break-even level of sales assuming a tax rate of 35%, a 10-year project life, and a discount rate of 12%?

Reference no: EM13791877

Questions Cloud

Present price per share of eastern common stock : Eastern Auto Parts' last dividend was D0 = $0.50 and the company expects to experience 5 percent constant growth for the future. Eastern has a required rate of return of 12 percent. What should be the present price per share of Eastern common stoc..

Describe each stage of erikson’s theory : Describe each stage of Erikson's theory

How the opportunity cost of your time and effort : Describe the last time you used a coupon or a rebate, and another time where you knew a coupon might be available and yet chose to not bother with it.

The far and contract provisions for protection : Assignment 4: The FAR and Contract Provisions for Protection Due Week 8 and worth 150 points Imagine that you are a contracts officer for the Internal Revenue Services (IRS), and that your supervisor has tasked you with the procurement of a new softw..

Accounting break-even level of sales : What is the accounting break-even level of sales in terms of number of diamonds sold? What is the NPV break-even level of sales assuming a tax rate of 35%, a 10-year project life, and a discount rate of 12%?

Analyze the influence of security threat groups : The PowerPoint will account for 15% of your final grade and is a presentation providing an informational analysis of how prisons control the influence of security threat groups (STGs).This assignment is designed to demonstrate your ability to analyze..

What is the companys current channel strategy : What is the companys current channel strategy - What is the reasoning behind this channel selection and how are the companys competitive position and brand loyalty related to its channel selection?

Compute the elasticities for independent variable : Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:

The united states attorney : You are a paralegal working in Plentibux & Moore, a boutique Richmond, Virginia law firm that specializes in white-collar criminal defense. The senio partner in the firm, Bob Plentibux calls you in to his office and tells you that he has a hot issue ..

User Account

All Pages