James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The
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James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 5 years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $580,000. The sales price per pair of shoes is $85, while the variable cost is $36. Fixed costs of $285,000 per year are attributed to the machine. The corporate tax rate is 25 percent and the appropriate discount rate is 8 percent. What is the financial break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16) Financial break-even point units
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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