Question: W # 4 ( Saved Problem 1 0 - 1 2 Break - even analysis Modern Artifacts can produce keepsakes that will be sold for

W # 4(
Saved
Problem 10-12 Break-even analysis
Modern Artifacts can produce keepsakes that will be sold for $140 each. Nondepreciation fixed costs are $2,200 per year, and variable costs are $120 per unit. The initial investment of $6,000 will be depreciated straight-line over its useful life of five years to a final value of zero, and the discount rate is 10%.
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?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole number.
c. What is the accounting break-even level of sales if the firm's tax rate is 20%?
d. What is the NPV break-even level of sales if the firm's tax rate is 20%?
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 break-even points when the tax rate is 0% and when the tax rate is 20%?
Note: Round intermediate calculation to the nearest whole number. Round your answers to 2 decimal places.
\table[[a. Accounting break-even level of sales,170,units],[b. NPV break-even level of sales,189,units],[c. Accounting break-even level of sales,170,units],[d. NPV break-even level of sales,194,units],[e. Degree of operating leverage, t=0%,,],[e. Degree of operating leverage, t=20%,,]]
 W # 4( Saved Problem 10-12 Break-even analysis Modern Artifacts can

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