Determine what is the accounting break-even level of sales

Assignment Help Financial Econometrics

Reference no: EM13335513

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $120. The materials cost for a standard diamond is $70. The fixed costs incurred each year for factory upkeep and administrative expenses are $215,000. The machinery costs $2.3 million and is depreciated straight-line over 10 years to a salvage value of zero.

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

What is the NPV break-even level of sales assuming a tax rate of 40%, a 10-year project life, and a discount rate of 10%?

Reference no: EM13335513

Questions Cloud

How does the analysis of your opportunity costs explain your : How does the analysis of your opportunity costs explain your decision to seek an education?

What is illustrated by shifting from one point on the ppc : Opportunity costs are unavoidable when we increase production of any good or service. Why?

Explain the freezing point of a solution of calcium chloride : Some physical properties of water are shown below. freezing point 0.00°C boiling point 100.00°C Kf 1.86°C/m Kb 0.512°C/m What is the freezing point of a solution of calcium chloride that contains 26.0 g CaCl2 dissolved in 330. g of water

Determine the work done on the jet by the catapult : Jet fighter planes are launched from aircraft carriers with the aid of their own engines and a catapult. what is the work done on the jet by the catapult

Determine what is the accounting break-even level of sales : Each diamond can be sold for $120. The materials cost for a standard diamond is $70. The fixed costs incurred each year for factory upkeep and administrative expenses are $215,000.

Explain why intermediate goods and services usually are not : Explain why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly?

Determine the absolute pressure of the water in the pipe : Water flowing out of a horizontal pipe emerges through a nozzle. The radius of the pipe is 2.5 cm, and the radius of the nozzle is 0.46 cm. determine the absolute pressure of the water in the pipe

Compute the cost of goods sold for the year ended december : the following data relate ti inventory for the year ended December 31, 2011. A physical inventory on December 31,2011, indicates that 600 units are on hand that they came from the July 1 purchase.

User Account

All Pages