Blistex was reviewing price and promotion alternatives for two products in its line: Regular Blixtex and Sensitive Lip Blistex. The price and promotion alternatives for the two products by their respective brand managers include the possibility of using additional promotion or a price reduction to stimulate sales volume.

Heres what we know.

	Blistex Regular	Blistex Sensitive Lips
Unit Price	$1.00	2.00
Unit Variable Costs	0.25	1.40
Unit Contribution	.75	.60
Unit volume	1,500,000	1,000,000

Both brand managers are considering either a price reduction of 5% or an incremental increase of $100,000 in advertising.

1. What absolute increase in sales units and dollar sales will be necessary to recoup the incremental increase in advertising expenditures for Regular? How about for Sensitive Lips?
2. What is the absolute increase in unit sales and dollar sales will be necessary to maintain the level of total contribution dollars if the price of each product is reduced by 5%