Aydens Toys, Inc., just purchased a $495,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 7-year economic life. Each toy sells for $23. The variable cost per toy is $5 and the firm incurs fixed costs of $355,000 per year. The corporate tax rate for the company is 22 percent. The appropriate discount rate is 10 percent. What is the financial break-even point for the project?

What is the Accounting Break-even point?

What is the Cash Flow Break-even point?