Adam Jones work has been noticed by other companies and is building a reputation as a superstar finance professional. This is the result of the hard work put in and never cheating on exams.

Adam Jones has been asked by a start-up food company to analyze a new product launch. This new company has developed a hazel nut - granola combination product that had tested extremely well with focus groups. Young adults between the ages of 18-29 rated it the best cereal they had ever tasted. The company has forecasted to sell a whopping 49,800 boxes of this new product in 2021. Other information provided ; that the company has fixed costs of $280,000, depreciation expense of $120,000, a tax rate of 30% and interest expense of $21,300.

The production team forecasts that each cereal box will cost $15.89 to produce. The new general manager is insisting that operating cashflows must be no less than $141,305 for this new product launch in 2021. Adam Jones has been asked to determine what the minimum price should be for this product, given the general managers operating cashflow requirements? Show all your calculations. The general manager also wants some recommendations on what the company can do to improve operating cashflow.