The Marx Brewing Company recently installed a new bottling machine.The machine's initial cost is €2,000, and can be depreciated on a straight line basis to a zero salvage in 5 years.The machine's per year ﬁxed cost is €1,800, and its variable cost is €0.50 per unit.The selling price per unit is €1.50.Marx's tax rate is 34%, and it uses a 16% discount rate.Calculate the accounting break-even point on the new machine, as well as the present value break-even point on the new machine.

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The Answer of The Marx Brewing Company recently installed a new bottling machine.The machine's initial cost is €2,000, and can be depreciated on a straight line basis to a zero salvage in 5 years.The machine's per year ﬁxed cost is €1,800, and its variable cost is €0.50 per unit.The selling price per unit is €1.50.Marx's tax rate is 34%, and it uses a 16% discount rate.Calculate the accounting break-even point on the new machine, as well as the present value break-even point on the new machine.

The Marx Brewing Company Recently Installed a New Bottling Machine