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Miller Company has just purchased a $540,000 machine to produce gadgets. The machine will be fully depreciated by the straight-line method over its six-year economic
Miller Company has just purchased a $540,000 machine to produce gadgets. The machine will be fully depreciated by the straight-line method over its six-year economic life. Each gadget sells for $41. The variable cost per gadget is $15, and the firm incurs fixed costs of $300,000 each year. The corporate tax rate for the company is 25%. The appropriate discount rate is 10%. What is the financial break-even point for the project (i.e., the quantity for financial break-even)?
16,743 units
16,812 units
16,955 units
17,057 units
17,139 units
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