Straight-line method over its six-year economic life

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Reference no: EM131871375

L.J.’s Toys Inc. just purchased a $414,000 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 $271,000 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 for the project? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Financial break-even point unit.

Reference no: EM131871375

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