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Chartreuse Co . has purchased a brand new machine toproduce its High Flight line ofChartreuse Co . has purchased a brand new machine to produce

Chartreuse Co. has purchased a brand new machine toproduce its High Flight line ofChartreuse Co. has purchased a brand new machine to produce its High Flight line of
shoes. The machine has an economic life of four years. The depreciation schedule for
the machine is straight-line with no salvage value. The machine costs $420,000. The
sales price per pair of shoes is $59, while the variable cost is $13. Fixed costs of
$155,000 per year are attributed to the machine. The corporate tax rate is 25 percent
and the appropriate discount rate is 7 percent.
What is the financial break-even point? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g.,32.16.)
Answer is complete but not entirely correct.
Financial break-
even
units
shoes. The machine has an economic life of four years. The depreciation schedule for
the machine is straight-line with no salvage value. The machine costs $420,000. The
sales price per pair of shoes is $59, while the variable cost is $13. Fixed costs of
$155,000 per year are attributed to the machine. The corporate tax rate is 25 percent
and the appropriate discount rate is 7 percent.
What is the financial break-even point? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g.,32.16.)
Financial break-even
units
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