After spending $500,000 in research and development, Snapple has developed a new high energy drink. Its called POW. The company plans to use a coupon in local newspaper fliers to promote the brand. They will only be covering 75% of the US market with their advertisements and distribution. The total US market for energy drinks is estimated to be 24 million cans. The coupon is worth $0.25 and only 20% of purchases are expected to redeem the coupon. The cost of the advertising campaign is $250,000. Other fixed overhead costs are expected to be $100,000 per year.

Heres what we know:

1. What is the breakeven volume in the first year in units?

2. What is the first year breakeven in terms of share of served market?