What is the financial break-even point for the project

Assignment Help Finance Basics

Reference no: EM13279118

J.L's Toys Inc. just purchased a $270,000 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 $22. The variable cost per toy is $9, and the firm incurs fixed costs of $342,000 each year. The corporate tax rate for the company is 32 percent. The appropriate discount rate is 9 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: EM13279118

Questions Cloud

What is the break-even point in bags : Healthy Foods Inc. sells 40-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $91,000, while the variable costs of grapes are $.20 per pound.

What is the amount to use as the annual sales figure : What is the amount to use as the annual sales figure when evaluating this project?

Determine set the corresponding connections of the cts : a differential protection system with a power transformer 450MVA, 230/115kV, determine: a. The current line on both sides of the power transformer b. Based on these current selection for the cts from the table. c. Set (identify) the corresponding con..

What is the net upward lift force on the plane : Consider an airplane of wing area 6.8 m^2 (both wings combined) flying through air of density 1.13 kg/m^3. What is the net upward lift force on the plane

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

What is the corresponding change on the fahrenheit scale : On the Moon, the average surface temperature is 127 ?C during the day and -183 ?C during the night. What is the corresponding change on the Fahrenheit scale

Construction financing for the development of an outlet mall : Buster Cogdill, a real estate developer, made an offer to the Bank of Benton to have the bank provide construction financing for the development of an outlet mall, with funds to be provided at prime rate plus two percentage points. The bank%u2019s pr..

What is the value of the option to wait : What is the value of the option to wait? (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))

What will be the change in the inner diameter of the ring : A man's gold wedding ring has an inner diameter of 2.2cm at 30?C. what will be the change in the inner diameter of the ring

User Account

All Pages