Drace Innovations is a local drone manufacturer that is planning to launch a new drone uses technology which will allow the drone to fly 100 times farther and 100 times longer drone on the market. Cost of research and development is $250,000 and the size is currently measured at 4250,000 of which currently serves 50 % .

Advertising will carry a coupon that will entitle the consumer to receive $ 20.00 off the drone purchased . Research has shown that 25 % of customers will redeem the redemption is a variable cost ). The cost of the newspaper advertising returns be $ 500.000 . Other fixed costs will be $ 2 million per year . The cost $ 23 . The finding of several research studies has determined that to pay $ 80 for each drone at which the retail selling price would be margin is 30 % and the wholesaler's margin is 20 % .

a) What is the company breakeven in units ?

b) What is the company breakeven in dollars?

c) What is the company breakeven share of market as a percentage ?