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10 10-The Marx Brewing Company recently installed a new bottling machine. The machine's initial cost is $2,000, and can be depreciated on a straight-line basis
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10-The Marx Brewing Company recently installed a new bottling machine. The machine's initial cost is $2,000, and can be depreciated on a straight-line basis to a zero salvage in 5 years. The machine's fixed cost per year is $1,800, and its variable cost is $0.50 per unit. The selling price per unit is $1.50. Marx's tax rate is 34%, and it uses a 10% discount rate. Calculate the accounting break-even point on the new machine, as well as the present value (Finance) break-even point on the new machine Step by Step Solution
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