Question niko has purchased a brand new machine to produce, Ask an Expert

Finance

Question: Niko has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of six years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $732,000. The sales price per pair of shoes is $61, while the variable cost is $15. $172,000 of fixed costs per year are attributed to the machine. Assume that the corporate tax rate is 35 percent and the appropriate discount rate is 9 percent.

What is the financial break-even point? (Do not round intermediate calculations and round your final answer to nearest whole number (e.g., 32).)

Financial break-even point units

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92855529

Have any Question?Write your Review or question?

Related Questions in Basic Finance

We know that during the last 10 years the average

We know that during the last 10 years, the average historical return on a market index is 12%. We also know that the average inflation rate and average risk-free rate over the last 10 years are 2% and 5%, respectively. W ...

What are some best practice principles to remember for

What are some best practice principles to remember for estimating a corporate cost of capital?

You are planning to make annual deposits of 4440 into a

You are planning to make annual deposits of $4,440 into a retirement account that pays 9 percent interest compounded monthly. How large will your account balance be in 32 years? (Do not round intermediate calculations an ...

Why might one firm have positive cash flows and be headed

Why might one firm have positive cash flows and be headed for financial trouble, whereas another firm with negative cash flows could actually be in a good financial position.

Since opening your new retail business you have found

Since opening your new retail business, you have found yourself steadily diversifying your product offering and thereby expanding your inventory - a practice commonly referred to as line extension. Cash is running short ...

Need help figuring out how to solve for irr ive looked all

Need help figuring out how to solve for IRR. I've looked all over and seeing different ways to do it, however I'm not sure how to get the IRR %. I know that NPV is 0, but not sure how to calculate the rest. Suppose your ...

What is inventory and why is it important for your business

What is inventory and why is it important for your business, investors or potential lenders?

Discuss the project factors listed in the chaos study of

Discuss the project factors listed in the CHAOS Study of information technology project management

A closed-end fund starts the year with a net asset value of

A closed-end fund starts the year with a net asset value of $25. By year-end, NAV equals $26.40. At the beginning of the year, the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a ...

Assume that you contribute 300 per month to a retirement

Assume that you contribute $300 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $500 per month for 20 years. Given a 9 percent interest rate, what is the value of your retir ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert