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Business, 03.02.2020 23:49 villafana36

Ares, inc, has purchased a brand new machine to produce its high flight line of shoes. the machine has an economic life of five years. the depreciation schedule for the machine is straight-line and there is no anticipated salvage value. the machine costs $575,000. the sales price per pair of shoes is $60, while the variable cost is $14. the $165,000 of fixed costs per year are attributed to the machine. assume that the corporate tax rate is 34% and the appropriate discount rate is 8%. given this information, what is the economic break-even point of sale?

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