What is the financial break-even point point for the project

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Reference no: EM131975634

Problem

Shane's Toys, Inc., just purchased a $272,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its four-year economic life. Each toy sells for $23. The variable cost per toy is $10, and the firm incurs fixed costs of $270,000 each year. The corporate tax rate for the company is 40 percent. The appropriate discount rate is 10 percent. What is the financial break-even point point for the project?

Reference no: EM131975634

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