Use the results of Problem 25 to find the accounting, cash, and financial break-even quantities for the company in Problem 27.

Data From Problem 25:

This problem concerns the effect of taxes on the various break-even measures.

Data From Problem 27:

Consider a project to supply Detroit with 35,000 tons of machine screws annually for automobile production. You will need an initial $3,200,000 investment in threading equipment to get the project started; the project will last for five years. The accounting department estimates that annual fixed costs will be $450,000 and that variable costs should be $185 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the five-year project life. It also estimates a salvage value of $500,000 after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $230 per ton. The engineering department estimates you will need an initial net working capital investment of $360,000. You require a 13 percent return and face a marginal tax rate of 38 percent on this project.