Question: im having trouble understanding this question. can someone explain how to solve this? Assume after your projections that you have decided to sell the SELUxe
im having trouble understanding this question. can someone explain how to solve this?
Assume after your projections that you have decided to sell the SELUxe shoe for $30; flic assume that your friend, flush with are decided to sell tho give you the loan for the full S100k and will only charge you 10% simp lash is wiling u are able to pay off the loan in one year. If you fail to pay it off in one year, she takes full ownership of the company. After crunching the numbers on labor costs, raw materials, shipping, cos pment rental, and manufacturing space you costs, tar male pair Of SELUxe will cost an average of $133 to produce in year 1 (it will likely go down once you have established relationships and have achieved scale in future vears). How many pairs of shoes will you need to sell in order to pay back vour friend in year 1 and keep the company? Analyze the likelihood of success under this plan. What would you change in order to improve your odds of turning a profit in year 1? (Keep in mind that you have not budgeted for any marketing expenses or paying yourself a salary).
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