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Samuelson, Inc., has just purchased a $660,000 machine to produce calculators. The machine will be fully depreciated by the straight-line method over its economic life of six years and will produce 43,000 calculators each year. The variable production cost per calculator is $13, and total fixed costs are $920,000 per year. The corporate tax rate for the company is 36 percent.

For the firm to break even in terms of accounting profit, how much should the firm charge per calculator?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92336623

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