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8. (14 points) A manufacturer sells a particular product in both Argentina and the U.S. In Argentina, the manufacturer has been selling 4,900 units per

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8. (14 points) A manufacturer sells a particular product in both Argentina and the U.S. In Argentina, the manufacturer has been selling 4,900 units per year of the product at a price of $200 and a contribution margin of 25 percent. (a) For sales of this product in Argentina, calculate the breakeven sales level for a $20 price increase. Show your work. (b) In the U.S., the manufacturer's price for this product is $400 and the contribution margin is 50 percent. The manufacturer knows that, because of gray market commerce, every one-unit change of sales of this product in Argentina leads to a 0.15-unit sales change in the opposite direction in the U.S. Given this information, recalculate the breakeven sales level in Argentina described in Part (a). Show your work . (c) Using the course material, describe the concept of a price corridor. Then explain how the difference between the breakeven you calculated in Part (b) and the one you calculated in Part (a) is helpful for applying the price-corridor concept in this situation

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