After losing his own zoo in a legal battle, Joe Exotic is in the process of planning his next business venture. At the moment, he's thinking about selling plush toy tigers to other zoos' gift shops in the US and Canada. However, before embarking on his next business adventure, he wants to estimate the market share he will need to break even on his investment. Joe will manufacturer the toy tigers and sell them to a wholesaler who will then sell them to zoo gift shops throughout the US and Canada. The zoo gift shops will price the toy tigers at $10 and take a 30% gross margin, while the wholesaler will take a 20% gross margin. Joe estimated that his fixed costs will be $200,000 and his variable costs will be $3.60 per unit. An industry report estimates that a total of 10 million plush toy animals are sold in US and Canadian zoo gift shops every year. 

Based on these estimates, what market share does Joe need to breakeven

 

Profit Impact (Unit Margin Contribution x Unit Sales) - Fixed Costs Break-Even Volume = Total Fixed Costs / Unit Margin Contribution