URGENT

Your work has been noticed by other company's and you are building a reputation as a superstar finance professional. You decide to start your own consulting company.

Your first client is a start-up food company. 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 to you were; 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.

You find out from the production team 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.

You have been asked to determine what the minimum price should be for this product, given the general managers operating cashflow requirements? Show all your calculations.