James, Inc., has purchased a brand new machine to produce its High Flight line of shoes....
James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 6 years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $588,000. The sales price per pair of shoes is $86, while the variable cost is $37. Fixed costs of $286,000 per year are attributed to the machine. The corporate tax rate is 21 percent and the appropriate discount rate is...
Ayden's Toys, Inc.. just purchased a $475,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 6-year economic life. Each toy sells for $19. The variable cost per toy is $6 and the firm incurs fixed costs of $335,000 per year. The corporate tax rate for the company is 23 percent. The appropriate discount rate is 11 percent. What is the financial break-even point for the project? (Do not round intermediate calculations...
Ayden's Toys, Inc., just purchased a $320,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its four-year economic life. Each toy sells for $23. The variable cost per toy is $10, and the firm incurs fixed costs of $282,000 each year. The corporate tax rate for the company is 40 percent. The appropriate discount rate is 10 percent. What is the financial break-even point for the project? (Do not round intermediate calculations...
Ayden’s Toys, Inc., just purchased a $445,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 5-year economic life. Each toy sells for $13. The variable cost per toy is $5 and the firm incurs fixed costs of $305,000 per year. The corporate tax rate for the company is 22 percent. The appropriate discount rate is 10 percent. What is the financial break-even point for the project? (Do not round intermediate calculations...
Ayden’s Toys, Inc., just purchased a $445,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 5-year economic life. Each toy sells for $13. The variable cost per toy is $5 and the firm incurs fixed costs of $305,000 per year. The corporate tax rate for the company is 22 percent. The appropriate discount rate is 10 percent. What is the financial break-even point for the project? (Do not round intermediate calculations...
Ayden’s Toys, Inc., just purchased a $470,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 6-year economic life. Each toy sells for $18. The variable cost per toy is $6 and the firm incurs fixed costs of $330,000 per year. The corporate tax rate for the company is 22 percent. The appropriate discount rate is 10 percent. What is the financial break-even point for the project? (Do not round intermediate calculations...
Problem 9-4 Financial Break-Even Ayden's Toys, Inc., just purchased a $510,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its six-year economic life. Each toy sells for $27. The variable cost per toy is $12, and the firm incurs fixed costs of $287,000 each year. The corporate tax rate for the company is 35 percent. The appropriate discount rate is 11 percent. What is the financial break-even point for the project? (Do...
L.J's Toys Inc. just purchased a $432,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its six-year economic life. Each toy sells for $27. The variable cost per toy is $12, and the firm incurs fixed costs of $274,000 each year. The corporate tax rate for the company is 35 percent. The appropriate discount rate is 11 percent. What is the financial break-even point for the project? (Do not round intermediate calculations...
L.J.’s Toys Inc. just purchased a $510,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its six-year economic life. Each toy sells for $27. The variable cost per toy is $12, and the firm incurs fixed costs of $287,000 each year. The corporate tax rate for the company is 35 percent. The appropriate discount rate is 11 percent. What is the financial break-even point for the project? (Do not round intermediate calculations...
Shane's Toys, Inc., just purchased a $296,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its four-year economic life. Each toy sells for $23. The variable cost per toy is $10, and the firm incurs fixed costs of $276,000 each year. The corporate tax rate for the company is 40 percent. The appropriate discount rate is 10 percent. What is the financial break-even point point for the project?