Explain all question with proper answer. Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $140. The materialscost for a standard diamond is $60. The fixed costs incurred each year for factory upkeep and administrative expensesare $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 intermediatecalculations.)Break-even salesdiamonds per yearb. What is the NPV break-even level of diamonds sold per year assuming a tax rate of 35%, a 10-year project life, and adiscount rate of 12% ? (Do not round intermediate calculations. Round your answer to the nearest whole number.)Break-even salesdiamonds per year

In accounting break even the number of units sold so that overall profit is zero and all cost fixed…

Answered: Dime a Dozen Diamonds makes synthetic…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 3P

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