A home appliances producer is launching a new bread toaster. The producer has a design team consisting of ten designers. The annual cost of this design team including salaries, office rent etc. is 5 million TL. The salaries of a full-time CEO and marketing director add up to 750,000 TL per year. The materials to produce a toaster cost 125 TL. The target price for the toaster is 240 TL and the first six months after the introduction of the bread toaster, the company sold 100,000 units.

1. How many units does the company need to sell in one year to break-even?
2. How much net profit or loss does the company make in the first year, assuming it will keep the same sales trend?
3. In the second year, the CEO considers cutting the price by 5% to reach price sensitive segments. How many additional units would the company need to sell for the price cut to be beneficial?
4. Would you decrease the price? Why or why not?
5. In addition to the price cut, the CEO is also considering an advertising campaign with outdoor billboards to increase awareness, consideration, and purchase intention of the target market. The ad campaign would cost 300,000 TL including production, execution, media buying and all other costs. How many additional toasters would the company need to sell for the price reduction AND the advertising simultaneously to pay off?