What is the financial break-even point

Reference no: EM132018693

Question: Niko has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of five years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $535,000. The sales price per pair of shoes is $60, while the variable cost is $14. $157,000 of fixed costs per year are attributed to the machine. Assume that the corporate tax rate is 34 percent and the appropriate discount rate is 8 percent.

What is the financial break-even point?

Reference no: EM132018693

Questions Cloud

Which character in wuthering heights do you find interesting : This could be the character you find most relatable, repulsive, complex, caring, strange, etc. Pretend you are this character and write a diary entry.

Find what is the cash break-even point : If the selling price is $48.50 per unit, what is the cash break-even point? If depreciation is $620,000 per year, what is the accounting break-even point?

Calculating the required return in given case : The next dividend payment by Mosby, Inc., will be $3.20 per share. The dividends are anticipated to maintain a 3.25 percent growth rate, forever.

What accounts are affected when recording the issue date : What accounts are affected when recording the issue date of a discount bond? How about when recording interest and amortization

What is the financial break-even point : Niko has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of five years.

Find what is the dividend yield : The next dividend payment by Most Inc. will be $3.35 per share. The dividends are anticipated to maintain a 7.5 percent growth rate forever.

What was the the purchase price of the dishwasher : Nicole purchased a dishwasher. 4.5% sales tax and then a delivery/installation charge were added. A total of $6€×.×/ was charged to her credit card.

What is the price per share of nogrowth stock : NoGrowth Corporation currently pays a dividend of $0.52 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth.

What is the required return on green equity : Green currently generates annual pretax earnings of $1.43 million. What is the required return on Green's equity after the restructuring

User Account

All Pages