What is the accounting break-even level of sales

Assignment Help Financial Accounting
Reference no: EM132484345

Point 1: Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $140. The materials cost for a standard diamond is $40. The fixed costs incurred each year for factory upkeep and administrative expenses are $203,000. The machinery costs $1.4 million and is depreciated straight-line over 10 years to a salvage value of zero.

Question a. What is the accounting break-even level of sales in terms of number of diamonds sold? (Do not round intermediate calculations.)

Question b. What is the NPV break-even level of diamonds sold per year assuming a tax rate of 21%, a 10-year project life, and a discount rate of 14%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Reference no: EM132484345

Questions Cloud

Describe produces only temporary and transitory benefits : A theory has been advanced for what is called "Disaster Diplomacy." Its premise is that international disaster response can be a form of diplomacy.
What will profits be if sales turn out to be million : What will profits be if sales turn out to be $5.0 million? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)
What are the characteristics of postmodern christianity : What were the characteristics of Christianity in the premodern era? How did Christianity encounter modernity? What are the characteristics of postmodern.
Determine what is the accounting break-even level of sales : What is the accounting break-even level of sales if the firm's tax rate is 40%? What is the NPV break-even level of sales if the firm pays no taxes?
What is the accounting break-even level of sales : What is the NPV break-even level of diamonds sold per year assuming a tax rate of 21%, a 10-year project life, and a discount rate of 14%?
What is body mass index : Prepare a summary, that can be use in a brochure in order to teach patients about the importance of breastfeeding (at least 350 words). What is body mass index?
What must be the variable cost per unit : What must be the variable cost per unit? (Round your answer to 2 decimal places.) The following estimates have been prepared for a project.
What are the ramifications of social networking sites : From the assigned article, what are the ramifications of social networking sites (facebook, myspace, twitter, etc.) from the employee perspective?
Outlines and critiques major developmental theories : An essay which outlines and critiques major developmental theories underpinning the development and learning of young children.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd