Question
Shane's Toys, Inc., just purchased a $474,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its six-year
Shane's Toys, Inc., just purchased a $474,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its six-year economic life. Each toy sells for $27. The variable cost per toy is $12, and the firm incurs fixed costs of $281,000 each year. The corporate tax rate for the company is 35 percent. The appropriate discount rate is 11 percent. What is the financial break-even point point for the project? (Do not round intermediate calculations and round your final answer to nearest whole number (e.g., 32).)
Break-even point __?___units
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