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Company decided to invest in a machine to make new tablets. The Price of the machine is $600,000 and its economic life is five years.
Company decided to invest in a machine to make new tablets. The Price of the machine is $600,000 and its economic life is five years. The machine is depreciated by the straight-line method and has no salvage value. The machine will produce 20,000 tablets every year. The variable production cost per tablet is $15, while fixed costs are $900,000. The corporate tax rate for the company is 30 percent. What should the sales price per tablet be for the firm to have a zero-accounting profit?
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