Chartreuse Co. 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. Fixed costs of $172,000 per year are attributed to the machine. The corporate tax rate is 22 percent and the appropriate discount rate is 9 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.) Financial break-even units
Chartreuse Co. 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. Fixed costs of $172,000 per year are attributed to the machine. The corporate tax rate is 22 percent and the appropriate discount rate is 9 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.) Financial break-even 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
Problem 1PS
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Chartreuse Co. 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. Fixed costs of $172,000 per
year are attributed to the machine. The corporate tax rate is 22 percent and the
appropriate discount rate is 9 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.)
Financial break-even
units
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