Problem $7-4$ Financial Break$-$even

Ayden's Toys, Incorporated, just purchased a $$530,000$ machine to produce toy cars.

The machine will be fully depreciated by the straight$-$line method over its $5-$year

economic life. Each toy sells for $$30.$ The variable cost per toy is $$14$ and the firm incurs

fixed costs of $$390,000$ per year. The corporate tax rate for the company is $24$ percent.

The appropriate discount rate is $12$ percent. What is the financial break$-$even point for

the project? $($Do not round intermediate calculations and round your answer to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

Financial break$-$even point

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