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.a) What is the project’s financial break-even point in units?b) 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?
