Question

In: Finance

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for...

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $160. The materials cost for a standard diamond is $60. The fixed costs incurred each year for factory upkeep and administrative expenses are $218,000. The machinery costs $2.1 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 number of diamonds sold? (Answer in diamonds-per-year. Do not round intermediate calculations.)

b. What is the NPV break-even level of diamonds sold per year assuming a tax rate of 40%, a 10-year project life, and a discount rate of 12%? (Answer in diamonds-per-year. Do not round intermediate calculations. Round your answer to the nearest whole number.)

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for...
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $140. The materials cost for a standard diamond is $60. The fixed costs incurred each year for factory upkeep and administrative expenses are $214,000. The machinery costs $2.1 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 number of diamonds sold? (Do not round intermediate calculations.) b....
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for...
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $140. The materials cost for a standard diamond is $60. The fixed costs incurred each year for factory upkeep and administrative expenses are $214,000. The machinery costs $2.1 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 number of diamonds sold? (Do not round intermediate calculations.) b....
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for...
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 $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 number of diamonds sold? (Do not round intermediate calculations.) b....
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for...
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $50. The fixed costs incurred each year for factory upkeep and administrative expenses are $201,000. The machinery costs $1.1 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 number of diamonds sold? (Do not round intermediate calculations.) Break-even...
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for...
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 $60. The fixed costs incurred each year for factory upkeep and administrative expenses are $204,000. The machinery costs $1.5 million and is depreciated straight-line over 10 years to a salvage value of zero. Looking to get a better understadning of this question, so that it can be solved. thank you!
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for...
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $40. The fixed costs incurred each year for factory upkeep and administrative expenses are $220,000. The machinery costs $1.4 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 number of diamonds sold? (Do not round intermediate calculations.) b....
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for...
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $50. The fixed costs incurred each year for factory upkeep and administrative expenses are $207,000. The machinery costs $1.1 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 number of diamonds sold? (Do not round intermediate calculations.) b....
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for...
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $130. The materials cost for a standard diamond is $80. The fixed costs incurred each year for factory upkeep and administrative expenses are $206,000. The machinery costs $1.2 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 number of diamonds sold? (Do not round intermediate calculations.) b....
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for...
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $50. The fixed costs incurred each year for factory upkeep and administrative expenses are $205,000. The machinery costs $1.6 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 number of diamonds sold? (Do not round intermediate calculations.) b....
A plant makes liquid carbon dioxide by treating a limestone with commercial sulfuric acid. The limestone...
A plant makes liquid carbon dioxide by treating a limestone with commercial sulfuric acid. The limestone analyzes 68.1% calcium carbonate, 27.1% magnesium carbonate and the rest silica. The acid used was 88.3% sulfuric acid with rest being water. Calculate the pounds of acid required per ton of limestone treated.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT