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