Alliance, Inc. sells gas lamps to consumers through retail outlets. Total industry sales for Alliances relevant market last year were $100 million, with Alliances sales rep- resenting 5% of that total. Contribution margin is 25%. Alliances sales force calls on retail outlets and each sales rep earns $50,000 per year plus 1% commission on all sales. Retailers receive a 40% margin on selling price and generate average revenue of $10,000 per outlet for Alliance.

b. Another suggestion is to hire two more sales representatives to gain new consumer retail accounts. How many new retail outlets would be necessary to break even on the increased cost of adding two sales reps?

c. A final suggestion is a make a 10% across-the-board price reduction. By how much would dollar sales have to increase to maintain Alliances current contribution? (See endnote 6 to calculate the new contribution margin.)

Please make sure your answer is fully CORRECT. I SEE THIS QUESTION ALL OVER CHEGG BUT THE SAME QUESTION HAS DIFFERENT ANSWERS.