Question: Modern artifacts can produce keepsakes that will be sold for $80 each. Nondepreciation fixed costs are $1,100 per year, and variable costs are $60 per

Modern artifacts can produce keepsakes that will be sold for $80 each. Nondepreciation fixed costs are $1,100 per year, and variable costs are $60 per unit. The initial investment of $4,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate it 12%.

a. What is the accounting break-even level of sales if the firm pays no taxes?

b. What is the NPV break even level of sales if the firm pays no taxes?

c. What is the accounting break-even level of sales if the firm's tax rate is 40%?

d.What is the NPV break-even level of sales if the firm's tax rate is 40%?

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