1. Runner's Supply is looking at developing a new line of rubber shoes marketed to females over the age of 50. The cost of the software for this project is $400,000 that can be depreciated using straight line depreciation over 5 years. The selling price for the shoes is $30 with variable costs of $14, fixed costs of $300,000, cost of capital 8% and tax rate of 34%. The original plan is to sell 36,000 pairs of shoes per year.

What is the financial breakeven (in units) for this project?

Short answer

2. What OCF is needed for this project to financially breakeven?

Short answer

3. What is the financial breakeven price per unit for this project?

Short answer