Modern Artifacts Can Produce Keepsakes That Will Be Sold for $80

question 17

Essay

Modern Artifacts can produce keepsakes that will be sold for $80 each.Non depreciation fixed costs are $1,000 per year and variable costs are $60 per unit.If the project requires an initial investment of $3,000 and is expected to last for 5 years and the firm pays no taxes, what are the accounting and economic break-even levels of sales? The initial investment will be depreciated straight-line over 5 years to a final value of zero, and the discount rate is 10 percent.

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