$2.$ Video Concepts, Inc. $($VCI$)$ markets video equipment and film through a variety of retail outlets. Presently, VCI is faced with a decision as to whether it should obtain the distribution rights to an unreleased film titled Touch of Orange. If this film is distributed by VCI directly to large retailers. VCI estimates the total market for the film to be $100,000$ units. Other data available are as follows:

Cost of distribution rights for film

$$125,000$

Label design

$5,000$

Package design

$10,000$

Advertising

$35,000$

Reproduction of copies $($per $1,000)$

$4,000$

Manufacture of labels and packaging $($per $1,000)$

$500$

Royalties $($per $1,000)$

$500$

VCI's suggested retail price for the film is $$20$ per unit, and the retailer's margin is $40$ percent.

What is VCI's unit contribution and contribution margin?

What is the break$-$even point in units? In dollars?

What share of the market would the film have to achieve to earn a $20$ percent return on VCI's investment in the first year?