1. Dunder Mifflin, of Scranton, PA, is the leading manufacturer of office furniture and related items. Their products are made from solid wood, veneer, metal, and laminate. Dunder Mifflin is introducing a new line called The Dwight. The U.S. overall furniture market is estimated to be $24,813,556,000. Office furniture is 39% of all U.S. furniture sales. The office furniture category is composed of four distinct segments:

   (1) Non-solid wood 29%; (2) Solid wood 43%; (3) Metal 18%; (4) Laminate 10%.

   Sales of solid wood office furniture at the retail level are as follows: (1) Department stores 22%; (2) Chain furniture stores 40%;

   (3) Independent furniture stores 17%; (4) Mass merchandisers 8%; (5) Unfinished furniture stores 9%; (6) Online 4%.

   (b) If Dunder Mifflin has fixed costs of $5,934,100 associated with The Dwight line and an average CM (%) of 32.5%, what is its BEP M/S% (based on $ sales) of the relevant market?

   		1.13%
   		0.98%
   		1.33%
   		1.29%