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L.J.'s Toys Inc. just purchased a $205,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its five-year
L.J.'s Toys Inc. just purchased a $205,000 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 $23. The variable operating cost per toy is $5, and the annual fixed operating cost is $348,000. The corporate tax rate for the company is 32 percent. The appropriate discount rate is 10 percent.
What is the break even point in units of the project
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