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Aria Kim is a Marketing Director for Petopia Products, a manufacturer of pet products with an extensive product catalogue and multiple product lines. With her

Aria Kim is a Marketing Director for Petopia Products, a manufacturer of pet products with an extensive product catalogue and multiple product lines. With her recent promotion, she is responsible for all aspects of marketing for the "pet beds" and "chews and toys" product lines. On average pet beds were sold for a retail price of $40, with retailers looking to achieve a 30% margin. Meanwhile, wholesalers took an 18% markup on cost. The costs associated with pet beds included $500,000 in fixed manufacturing costs, $125,000 in product-specific salaries and an annual ad campaign that cost $750,000. In addition, it costs $5 per bed for materials, $2 per bed for labour, and $3 per bed for shipping and other logistics. The global market for pet beds is estimated to be 7.8M units, and last year Petopia sold 390,000 beds. For chews and toys, the average retail price was $10, and retailers and wholesalers received the same margins as for pet beds. Also, the fixed costs associated with chews and toys were the same as for pet beds, but Petopia's margin on chews & toys was only 25%. a) What would be Petopia's Break-even market share for pet beds? (20 marks)

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