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Modern Artifacts can produce keepsakes that will be sold for $60each. Nondepreciation fixed costs are $2,200 per year, and variablecosts are $30 per unit. The initial investment of $4,000 will bedepreciated straight-line over its useful life of 5 years to afinal value of zero, and the discount rate is 14%.a. What is the accounting break-even level ofsales if the firm pays no taxes? (Do not round intermediatecalculations. Round your answer to the nearest wholenumber.)b. What is the NPV break-even level of sales ifthe firm pays no taxes? (Do not round intermediatecalculations. Round your answer to the nearest wholenumber.)c. What is the accounting break-even level ofsales if the firm’s tax rate is 30%? (Do not roundintermediate calculations. Round your answer to the nearest wholenumber.)d. What is the NPV break-even level of sales ifthe firm’s tax rate is 30%? (Do not round intermediatecalculations. Round your answer to the nearest wholenumber.)
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