Zap in the introductory year and distribute Zap in major metropolitan area that account for 65% of U.S. breakfast drink volume. Newspaper advertising will carry a coupon hat will entitle the consumer to receive $0.20 off the price of the first can purchased. Management has diecided that the suggested retail price to the consumer for 8-ounce can will be $0.50. The only unit variable costs for the product are $0.18 for materials and $0.06 for labor. The company intends to give retailers a margin of 20% off the suggested retail price and wholesalers a margin of 10% of the retailers cost of the the item.
a. What price will Diversified Cirtus Industries be selling its product to wholesalers?
b. What is the break-even unit volume in the first year, What is the break-even unit volume in the first year and What is the first year break-even share of marke?