James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 6 years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $588,000. The sales price per pair of shoes is $86, while the variable cost is $37. Fixed costs of $286,000 per year are attributed to the machine. The corporate tax rate is 21 percent and the appropriate discount rate is 9 percent.

What is the financial break-even point?