A Producer has developed a new breakfast drink. The drink, called VitameX, will provide the consumer with nearly twice the vitamin D as other breakfast drinks. VitameX will be packaged in eight-ounce cans and will be introduced using a mass advertising campaign. Management has decided to spend $250,000 on advertising VitameX in the first year. Other fixed costs (overhead) are projected to be $150,000 per year. The unit variable costs to produce an eight-ounce can of the drink include $0.20 for materials and $0.10 for direct labor. The Producers selling price to the wholesaler is set at $0.50 per can. The wholesaler wishes to achieve a profit margin of 30% based on his selling price to the retailer. And the retailer wishes to achieve a profit margin of 40% based on his own selling price to the final consumer. Given the aforementioned, information answer the questions below. To avoid losing any points, you must show all workings, line by line, how you arrived at your answers, as well as all formulas you used in your calculation.

(a). What is the break-even point unit volume in the first year for the Producer? (5 points)

(b). What is the net profit for the Producer if 5 million units are sold? (5 points)

(c). How many units need to be sold for the Producer to achieve a profit of $750,000? (5 points)

(d). Calculate the price that the wholesaler will charge the retailer to achieve his set profit margin. Give your answer to two places of decimal. (5 points)

(e). Calculate the price that the retailer will charge the final consumer to achieve his set profit margin. Give your answer to two places of decimal. (5 points)