Downloads/Quantitative%20Analysis%20Exercise.pdf Product X is a consumer product with a retail price of $9.93. Retailer's margins on the product are 40% and wholesaler margins are 8% based on the selling price). The 9 size of the market is $300.000,000 annually (based on retail sales); product X' share (Gn dollars) of this market is 17.3%. The fixed costs involved in manufacturing Product X are $1,400,000 and the variable costs are $0.86 per unit. The advertising budget for Product X is $2,000,000. Miscellane- ous variable costs (e.g., shipping and handling) are $0.04 per unit. Salespeople are paid entirely by a 12% commission based on the manufacturer's selling price. Product man- ager's salary and expenses are $90,000. Assuming that you are the manufacturer, calculate the following: 1. What is the unit margin (contribution) for Product X (in $)? 2. What is Produet X's break-even volume? 3. What market share (based on retail sales) did Product X need to break even? 4. What is Product X's (annual) net profit? 5. Calculate the increase in sales over the eurrent volume needed to maintain the current profit level if the manufacturer doubles its advertising expenditures. current profit level if the manufacturer lowers ts price by 25%. rent profit level if the manufacturer increases the sales force's 6. Calculate the increase in sales over the current volume needed to maintain the 7. Calculate the increase in sales over the current volume needed to maintain the cur- commission to 15 Caleulations Guidelines