What is financial break-even point

Assignment Help Financial Management

Reference no: EM131510851

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

Reference no: EM131510851

Questions Cloud

Calculate expected current or interest yield for each bond : Calculate the expected current or interest yield for each bond in every year? Put your results into a table format.

Wacc and percentage of debt financing : Hook Industries' capital structure consists solely of debt and common equity. What percentage of the company's capital structure consists of debt?

Reasonable approach to a successful organization : Is this a reasonable approach to a successful organization?

Working capital cash flow cycle : Working Capital Cash Flow Cycle Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle.

What is financial break-even point : Niko has purchased a brand new machine to produce its High Flight line of shoes. What is the financial break-even point?

Considering a zero-coupon bond issue to raise : Nebraska Furniture Mart (NFM) is considering a zero-coupon bond issue to raise $2 billion in order to build the new NFM store to be located in Dallas, TX.

Evaluate a generation project with the cash flows : Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows. Compute the IRRs for this project.

Monthly payment-what will be the remaining loan balance : What is the monthly payment? After 15 years of making payments, what will be the remaining loan balance?

What is the bonds yield to maturity : The bond is currently trading for $900. What is the bond's yield to maturity?

User Account

All Pages