Order the answer to: Shane’s Toys Inc. just purchased a $325,000 machine to produce

Order the answer to: Shane’s Toys Inc. just purchased…

Question	Shane’s Toys Inc. just purchased a $325,000 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 $32. The variable cost per toy is $11, and the firm incurs fixed costs of $385,000 each year. The corporate tax rate for the company is 35 percent. The appropriate discount rate is 10 percent. What is the financial break-even point for the project?
Subject	business-corporate-finance

Question

Shane’s Toys Inc. just purchased a $325,000 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 $32. The variable cost per toy is $11, and the firm incurs fixed costs of $385,000 each year. The corporate tax rate for the company is 35 percent. The appropriate discount rate is 10 percent. What is the financial break-even point for the project?

Subject

business-corporate-finance

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