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Ayden's Toys, Inc., purchased a $455,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 5-year life.
Ayden's Toys, Inc., purchased a $455,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 5-year life. Each toy sells for $15. The variable cost per toy is $5 and the firm incurs fixed costs of $315,000 per year. The corporate tax rate for the company is 24 percent. The appropriate discount rate is 12 percent. What is the financial break-even point for the project?
Please Show the Work, I know it might be easy, but I appreciate it.
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