Question: W # 4 ( Saved Problem 1 0 - 1 2 Break - even analysis Modern Artifacts can produce keepsakes that will be sold for
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Problem Breakeven analysis
Modern Artifacts can produce keepsakes that will be sold for $ each. Nondepreciation fixed costs are $ per year, and variable costs are $ per unit. The initial investment of $ will be depreciated straightline over its useful life of five years to a final value of zero, and the discount rate is
a What is the accounting breakeven level of sales if the firm pays no taxes?
b What is the NPV breakeven level of sales if the firm pays no taxes?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole number.
c What is the accounting breakeven level of sales if the firm's tax rate is
d What is the NPV breakeven level of sales if the firm's tax rate is
Note: Do not round intermediate calculations. Round your final answer to the nearest whole number.
e What is the degree of operating leverage for the firm for the NPV breakeven points when the tax rate is and when the tax rate is
Note: Round intermediate calculation to the nearest whole number. Round your answers to decimal places.
tablea Accounting breakeven level of sales,unitsb NPV breakeven level of sales,unitsc Accounting breakeven level of sales,unitsd NPV breakeven level of sales,unitse Degree of operating leverage, e Degree of operating leverage,
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