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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 7 months 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....
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.
Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s...
Black Diamond Company produces snow skis. Each ski requires 2
pounds of carbon fiber. The company’s management predicts that
7,000 skis and 8,000 pounds of carbon fiber will be in inventory on
June 30 of the current year and that 170,000 skis will be sold
during the next (third) quarter. A set of two skis sells for $500.
Management wants to end the third quarter with 5,500 skis and 6,000
pounds of carbon fiber in inventory. Carbon fiber can be...
Black diamond company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company’s...
Black diamond company produces snow skis. Each ski requires 3
pounds of carbon fiber. The company’s management predicts that
6,300 skis and 7,300 pounds of carbon fiber will be in inventory on
June 30 of the current year and that 163,000 skis will be sold
during the next (third) quarter. A set of two skis sells for $430.
Management wants to end the third quaerywe with 5,800 skis and
5,300 pounds of carbon fiber in inventory. Carbon fiber can be...
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