Question
Niko has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of five years. The
Niko has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of five years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $590,000. The sales price per pair of shoes is $60, while the variable cost is $14. $168,000 of fixed costs per year are attributed to the machine. Assume that the corporate tax rate is 34 percent and the appropriate discount rate is 8 percent. |
What is the financial break-even point? (Do not round intermediate calculations and round your final answer to nearest whole number (e.g., 32).) |
Financial break-even point | units |
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