Variable cost in New Shoes is the unit cost of the product. Fixed costs are the marketing expenses for a region along with the allocated product development expense. With a variable cost of $40 and fixed expenses of $3,000,000, the break-even price for 100,000 units would be: Breakeven price = [($3,000,000/100,000) + $40] = [$30 + $40] = $70 Using the fixed expenses and projected unit sales from the example, what would the break even price be if unit cost is $35? Break-even price = If the break-even price is $70, and your target return on sales is 15%, what is the selling price? Selling price =