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
jeff jeffy answered 1 year agoRelated 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
ADVERTISEMENT
Latest Questions
- Baked potatoes are normally wrapped in aluminum foil. How does this affect the cooling of the...
- What is the process to obtain biomass production
- A labor market has 50,000 people in the labor force. Each month, a fraction p of...
- A road with a radius of 72 m is banked so that a car can navigate...
- 1) If you had not dried the solid, would the calculated percent yield have been higher,...
- Two structures of alanine can be drawn that have a net charge of zero, but the...
- Co(II) was used as an internal standard to analyze a sample of Ti(IV) with atomic absorption...
ADVERTISEMENT