Modern Artifacts can produce keepsakes that will be sold for $60 each. Nondepreciation fixed costs are $1,400 per year, and variable costs are $30 per unit. the initial investment of $5,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 12%. a). What is the accounting break-even level of sales if the firm pays no taxes? b).What is the NPV break even level of sales if the firm pays no sales? c). What is the accounting break even level of sales if the firms tax rate is 20%/ d). What is the NPV break even level of sales if the firms tax rate is 20%?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.