finance-Modern Artifacts can produce keepsakes that will be sold for $50 each

QUESTION

Modern Artifacts can produce keepsakes that will be sold for $50 each. Nondepreciation fixed costs are $2,900 per year, and variable costs are $30 per unit. The initial investment of $3,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 14%.A. What is the accounting break-even level of sales if the firm pays no taxes? (Round your answer to the nearest whole number)B. What is the NPV break-even level of sales if the firm pays no taxes? (Round your answer to the nearest whole number)C. What is the accounting break-even level of sales if the firm’s tax rate is 40%? (Round your answer to the nearest whole number)D. What is the NPV break-even level of sales if the firm’s tax rate is 40%? (Round your answer to the nearest whole number)

 

ANSWER:

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