Apple and Google sell a variety of products. Some products are more profitable than others. Teams of employees in each company make advertising, investment, and product mix decisions. Assume a typical ad costs $800,000 and that the average product for both Apple and Google sells for $400 per unit and generates a contribution margin of 20%. 1. Estimate how many additional products this ad must sell to justify its cost.

2. If instead Google targets its advertising towards products with contribution margins of 25% or higher, and all other information is unchanged, estimate how many additional products this ad must sell to justify its cost.