What is financial break-even point for project

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Reference no: EM131989919

L.J.'s Toys Inc. just purchased a $235,000 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 $26. The variable cost per toy is $5, and the firm incurs fixed costs of $349,000 each year. The corporate tax rate for the company is 35 percent. The appropriate discount rate is 11 percent.

Required:

What is the financial break-even point for the project? (Round your answer to the nearest whole number. (e.g., 32))

Reference no: EM131989919

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