Dime a dozen diamonds makes synthetic diamonds . Each can be sold for $100. The material cost $50. The fixed costs are 205,000. Machinery costs 1.6 million and is depreciated straight line over 10 years to a salvage of zero. What is break even sales and and the npv break even sales

Q: Radhubhai

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A: Accounting break even point=Therefore, the accounting break-even level of sales is 145 units.

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.