How do you calculate break even in this problem.

10/20/21, 6:38 PM Xfinity Connect Printout Ekaterina Konson 10/20/2021 2.03 PM To Ekaterina Konson Sent from Ekaterina Konson iPad Imagine that you are named by ASICS to lead the marketing effort into the 'Fun Run' segment. We don't have an extensive profile on these Fun Runners, bi Shift Ctri let's just say for now that they are defined by finishing a 5k race, as shown in Exhibits 1 & 2. Obviously, one of your first tasks would be to commission som market research to flesh out a segment profile like we did in the Breeder's Own Pet Foods case. For now, we will just say that they qualify by finishing a 5k race ASICS typically charge $200 for high performance shoes. For this Fun Run segment, they are targeting a lower price point, with a lower cost structure as the reduce some of the high performance features. Let's assume that the average price for a pair of shoes will be $70 Fn Distributors will take a 10% margin. Just take this off the price. The variable costs are expected to be 45% Imagine that ASICS plans to invest $8 M on the redesign of the shoes, $22 M to build new manufacturing facilities and infrastructure, and $12 M on a marketin campaign to get the Fun Run project off the ground. ASICS is hoping for a lower variable cost structure, but the best that the best estimate you can get from the design team is that the variable costs will be abot 45% of the price. How many additional units of these shoes do they need to sell to breakeven on the investments described above? To get maximum credit, show all your work Make sure you label all numbers with appropriate labels, including $ I will take points off for unlabeled numbers. . IMG_2731.jpg (460 KB)