2. WellyFish is a seafood company supplying crayfish to Wellington's local restaurants. The company has the...

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2. WellyFish is a seafood company supplying crayfish to Wellington's local restaurants. The company has the following information: Sales price per unit Variable costs per unit Fixed costs per year Depreciation per year Tax rate $43 $10.45 $435,000 $130,000 21% The discount rate for the company is 15 percent, the initial investment in equipment is $910,000, and the project's economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project's life. [1 mark] a. What is the accounting break-even level for the project? b. What is the financial break-even level for the project? 2. WellyFish is a seafood company supplying crayfish to Wellington's local restaurants. The company has the following information: Sales price per unit Variable costs per unit Fixed costs per year Depreciation per year Tax rate $43 $10.45 $435,000 $130,000 21% The discount rate for the company is 15 percent, the initial investment in equipment is $910,000, and the project's economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project's life. [1 mark] a. What is the accounting break-even level for the project? b. What is the financial break-even level for the project?

Answer rating: 100% (QA)

BreakEven Analysis for WellyFish a Accounting BreakEven Level This measures the level of sales n... View the full answer