Question: Please help me with the following question. Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $120. The

Please help me with the following question.

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $120. The material cost of a standard diamond is $40. The fixed costs incurred each year for factory upkeep and administrative expenses are $212,000. The machinery costs $2.2 million and is depreciated straight-line over 10 years to a salvage value of zero.

a. What is the accounting break-even level of sales in terms of the number of diamonds sold?

Note: Do not round intermediate calculations.

b. What is the NPV break-even level of sales assuming a tax rate of 21%, a 10-year project life, and a discount rate of 12%?

Note: Do not round intermediate calculations. Round your answer up to the nearest whole unit.

a. Break-even sales		diamonds per year
b. Break-even sales		diamonds per year

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