Problem $10-14$ NPV Break$-$Even Analysis $($LO$3)$

Modern Artifacts can produce keepsakes that will be sold for $$60$ each. Nondepreciation fixed costs are $$2,600$

per year, and variable costs are $$30$ per unit. The initial investment of $$5,000$ will be depreciated straight$-$line

over its useful life of $5$ years to a final value of zero, and the discount rate is $10\%.$

Note: For all the requirements, do not round intermediate calculations. Round your answer up to the nearest

whole unit.

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 $40\%?$