What is financial break-even point

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Reference no: EM131561448

Ron purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of four years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $492,000. The sales price per pair of shoes is $59, while the variable cost is $13. $173,000 of fixed costs per year are attributed to the machine. Assume that the corporate tax rate is 40 percent and the appropriate discount rate is 7 percent. What is the financial break-even point?

Reference no: EM131561448

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