What is the accounting break-even level of sales

Assignment Help Financial Management

Reference no: EM131611846

Modern Artifacts can produce keepsakes that will be sold for $80 each. Nondepreciation fixed costs are $1,100 per year, and variable costs are $60 per unit. The initial investment of $4,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 12%.

a. What is the accounting break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Acounting break-even level of sales units

b. What is the NPV break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

NPV break-even level of sales units

c. What is the accounting break-even level of sales if the firm’s tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Acounting break-even level of sales units

d. What is the NPV break-even level of sales if the firm’s tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

NPV break-even level of sales units

Reference no: EM131611846

Questions Cloud

What classes of stock does this company have : Were the dividends on common stock and/or preferred stock? What was the amount of each? What classes of stock does this company have

Calculate the price elasticity of supply of coal : Weak Coal Prices Hit China's Third-Largest Coal Miner The chairman of Yanzhou Coal Mining reported that the recession had decreased the demand for coal.

What is the value of the stock today : If the required return on Microtech is 14%, what is the value of the stock today?

At what price is total revenue at a maximum : What happens to total revenue if the price falls from $400 to $350 a chip and from $350 to $300 a chip?

What is the accounting break-even level of sales : What is the accounting break-even level of sales if the firm pays no taxes? What is the accounting break-even level of sales if the firm’s tax rate is 40%?

Record all jones corp entries for the year : During the year Smith earned net income of $100,000 and paid total dividends of $45,000. Record all Jones Corp. entries for the year

High rate of employee turnover : Like most fast food restaurants, Chipotle has a high rate of employee turnover. However, for Chipotle, this occurred not only at the entry-level, server jobs

Discuss crime procedural films and television shows : the community helps us to understand the persistent trend in crime procedural films and television shows

Write a paper about cost of production : Assignment: MICROECONOMIC PAPER. 4-5 PAGES APA FORMAT. Write a paper about COST OF PRODUCTION. INCLUDE REAL DATA AND NOT JUST WORDS.

User Account

All Pages