Frito-Lay purchases a case of potato chips worth of inputs for $500. It has an annual fixed costs of $2,000,000. It applies a margin of 30% when selling the case of potato chips to a wholesaler. The wholesale charges a 15% markup to the retailer. the retailer then sells to the final consumer at an afditional margin of 15%. In total, Frito-lay is able to sell 500,000 cases a year.

1. Calculate Frito-Lay's unit contribution.

2. Is Frito-Lay making a profit?

3. What is the final price paid by the consumer for a case of potato chips?