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You are considering investing in a company that cultivatesabalone for sale to local restaurants. Use the followinginformation: Sales price per abalone = $34.80 Variable costs perabalone = $5.90 Fixed costs per year = $373,000 Depreciation peryear = $118,000 Tax rate = 35% The discount rate for the company is15 percent, the initial investment in equipment is $826,000, andthe project’s economic life is seven years. Assume the equipment isdepreciated on a straight-line basis over the project’s life. a.What is the accounting break-even level for the project? (Do notround intermediate calculations and round your answer to thenearest whole number, e.g., 32.) Accounting break-even level unitsb. What is the financial break-even level for the project? (Do notround intermediate calculations and round your answer to thenearest whole number, e.g., 32.) Financial break-even levelunits
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