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Ayden's Toys, Inc., just purchased a $465,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 6-year
Ayden's Toys, Inc., just purchased a $465,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 6-year economic life. Each toy sells for $17. The variable cost per toy is $7 and the firm incurs fixed costs of $325,000 per year. The corporate tax rate for the company is 21 percent. The appropriate discount rate is 9 percent. What is the financial break-even point for the project?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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