The M&A Corporation has recently installed a new bottling machine. The initial cost of the machine is RM4,000, and can be depreciated using a straight line method to a zero salvage in five years. The machine's fixed cost per year is RM2,200 and its variable cost is RM0.75 per unit. The selling price per unit is RM2.20. Currently, M&A is in a 35% tax bracket and a cost of capital of 14%. Calculate the accounting break-even point and the present value break-even point of the new machine.

Answer rating: 100% (QA)

Accounting BreakEven Point Fixed costs Selling P... View the full answer