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L.J.?s Toys Inc. just purchased a $420,000 machine...

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Question

L.J.?s Toys Inc. just purchased a $420,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its five-year economic life. Each toy sells for $25. The variable cost per toy is $11, and the firm incurs fixed costs of $286,000 each year. The corporate tax rate for the company is 34 percent. The appropriate discount rate is 12 percent. What is the financial break-even point for the project? (Do not round intermediate calculations and round your final answer to nearest whole number. (e.g., 32))

 

Paper#5491 | Written in 18-Jul-2015

Price : $25
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