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chartreuse co. has purchased a brand new machine to produce its high flight line of shoes. the machine has an economic life of five years.
chartreuse co. has purchased a brand new machine to produce its high flight line of shoes. the machine has an economic life of five years. the depreciation schedule for the machine is straight-line with no salvage value. the machine costs $468,000. the sales price per pair of shoes is $59, while the variable cost is $13. fixed costs of $167,000 per year are attributed to the machine. the corporate tax rate is 22 percent and the appropriate discount rate is 7 percent. What is the financial break-even point?
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