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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? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92748622

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