Blakersquos skiing shop invested 400000 to develop a new, Ask an Expert

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Blake’s Skiing Shop invested $400,000 to develop a new type of skateboard. The variable costs were $65 per unit and fixed costs were $175,000. The boards are expected to sell for $100 each. The project’s cost of capital is 12.5%. This project is expected to take 4 years to become marketable.

What is the project’s financial break-even point in units?

As the boards go on the market, people love them and there has been a 35% increase in sales. What is the percent change in OCF after the first year of sales?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91794985

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