Chartreuse Co. has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of four years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $420,000. The sales price per pair of shoes is $59, while the variable cost is $13. Fixed costs of $155,000 per year are attributed to the machine. The corporate tax rate is 25 percent and the appropriate discount rate is 7 percent. What is the financial break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) × Answer is complete but not entirely correct. Financial break- even 5,652.17 units
Chartreuse Co. has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of four years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $420,000. The sales price per pair of shoes is $59, while the variable cost is $13. Fixed costs of $155,000 per year are attributed to the machine. The corporate tax rate is 25 percent and the appropriate discount rate is 7 percent. What is the financial break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) × Answer is complete but not entirely correct. Financial break- even 5,652.17 units
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Chartreuse Co. has purchased a brand new machine to produce its High Flight line of
shoes. The machine has an economic life of four years. The depreciation schedule for
the machine is straight-line with no salvage value. The machine costs $420,000. The
sales price per pair of shoes is $59, while the variable cost is $13. Fixed costs of
$155,000 per year are attributed to the machine. The corporate tax rate is 25 percent
and the appropriate discount rate is 7 percent.
What is the financial break-even point? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
× Answer is complete but not entirely correct.
Financial break-
even
5,652.17 units
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