What is financial break-even point for the project

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L.J.’s Toys Inc. just purchased a $405,000 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 $25. The variable cost per toy is $11, and the firm incurs fixed costs of $283,000 each year. The corporate tax rate for the company is 34 percent. The appropriate discount rate is 12 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.)

Reference no: EM131878916

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