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How many TV must be produced and sold per year

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Question - Windsor Co. has just purchased a $6,000,000 machine to produce big-screen TVs. The machine can be used for 10 years and is depreciated on a straight-line basis. Use the following information:

Sales price per TV = $1,500

Variable costs per TV = $1,100

Fixed costs per year = $120,000

Tax rate = 40%

Discount rate = 8%

Required - How many TV must be produced and sold per year for you to receive any accounting profit?

Reference no: EM133123233

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