Benny Beene owns a very profitable ice cream stand. Based on the results of a marketing research study

that cost $$9,000,$ Benny is now considering adding a line of frozen yogurt to his product mix.

Benny expects that the machine necessary to produce the yogurt will cost $$300,000,$ last for five years and

have a salvage value of $$40,000$ at the end of the fifth year. For tax purposes, Benny will depreciate the

yogurt machine using a five$-$year MACRS schedule as follows:

Benny will incur extra annual fixed costs of $$6,000$ per year if he acquires this machine. The annual rent

on his stand under the existing noncancelable lease $($with five years remaining$)$ is $$35,000$ per year, with

built$-$in annual increases of $3\%).$

Benny $\text{'}$s average income tax rate is $25\%$ and his marginal income tax rate is $30\%--$ tax rates apply to both

ordinary income and capital gains$/$losses$.$ His after$-$tax cost of capital $($required rate of return or "hurdle

rate"$)$ is $16\%.$

Required:

Assuming that as people learn about the new product its sales will grow at a $4\%$ annual rate over the life

of the project, what must Benny's first$-$year before$-$tax contribution margin be in order to justify offering

this product line.

Show me how to solve this question WITHOUT excel and use the hp $10$bii financial calculator instead if needed. Thanks :)