Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $40. The fixed costs incurred each year for factory upkeep and administrative expenses are $219,000. The machinery costs $1.5 million and is depreciated straightline over 10 years to a salvage value of zero.
a. What is the accounting breakeven level of sales in terms of number of diamonds sold? (Do not round intermediate calculations.)
b. What is the NPV breakeven level of diamonds sold per year assuming a tax rate of 21%, a 10year project life, and a discount rate of 14%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

a.) Accounting break even volume = (Fixed costs + Depreciation) / (Selling price per unit  Variable cost per unit)
= (219000 + 150000) / (10040)
= 6150 Units
b.) Cash outflows = $1,500,000
Tax rate = 21%
Discount Factor = 14%
Fixed asset life = 10 Years
For NPV , we have to calculate present value of cash inflows
At NPV, PV of Cash inflows = PV Cash Outflows
For calculating quantity,
Let Q= the number of diamonds sold.
Cash flow = [(1 − Tax rate) × (revenue − expenses)] + (Tax rate × depreciation)
= (0.79 × (100Q− 40Q − 219,000)] + (0.21 × 150,000)
= 47.4Q − 173010 + 31500
= 47.4Q  141510
14%, 10year annuity factor = 5.2161
Therefore, for NPV to equal zero:
(47.4Q  141510 ) × 5.2161 = $1,500,000
247.24Q = $2,238,130
Q= 9,053 diamonds per year i.e. NPV breakeven sales quantity
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