Question: Break even. Modern artifacts can produce keepsakes that will be sold for $80 each. Non depreciated fixed cost are $1000 per year and variable cost

Break even. Modern artifacts can produce keepsakes that will be sold for $80 each. Non depreciated fixed cost are $1000 per year and variable cost are $60 per unit.

if the project requires an initial investment of $3000 and is expected to last for 5 years. the firm pays no taxes, what are the accounting and NPV break even level of sales? The initial investment will be depreciated straight line over 5 years to the final value 0, and the discount rate is at 10%. how do the answer change if the firm's tax rate changes to 40%

a) what is the degree of operation leverage of modern artifacts when sales are $ 8000?

b) what is the degree of operation leverage when the sales are $10,000?

c) why is operation leverage at these two levels different?

note: please solve a,b,c only.

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