Financial Break-Even L.J.'s Toys, Inc., just purchased a $375,000 machine to produce toy

cars. The machine will be fully depreciated by the straight-line method over its five-year

economic life. Each toy sells for $21. The variable cost per toy is $8, and the firm incurs fixed

costs of $280,000 each year. The corporate tax rate for the company is 34 percent. The

appropriate discount rate is 12 percent. What is the financial break-even point for the project?