Greg Chan, Marketing Manager for Windmaker Bicycles has decided to introduce a new line of high performance bicycles. He is preparing to take his marketing proposal to the company President. For this new product he recommends a budget of $100,000 in advertising and $80,000 in dealer promotions in the first year. There will be no additional delivery costs as these bicycles will be delivered along with current models. Windmaker sells their bicycles directly to the dealers - there are no distributors or middle men. The bicycles sell at an MSRP price of $640, and the dealer markup is 40%. Wind maker has a Gross Profit Margin of 45% for the bicycles it sells to retailers. Mr. Chan expects that the company will be able to sell 3,500 bicycles in the first year. The CFO tells Greg that this new product will be charged with $28,000 of corporate overhead this year. Develop the Income and Expense statement that Mr. Chan should be preparing for review with the President of Wind maker. What is the approximate breakeven for this new' product, stated in both bicycles and dollars? The Relax Co. developed a breakthrough deodorant that they are planning to introduce nationally. The size of the market in drugstores, which represents 65% of total deodorant market sales, was 140,000,000 units last year, and is expected to grow 2% this year. For this problem we assume that all deodorant products are sold in 2 ounce containers. The product is only sold through distributors. Projected price/container to the distributors will be $1.95 and variable cost/container is estimated at $ 0.93. Estimated year 1 share is projected to be 5% of the total deodorant market. Calculate total contribution in year 1 assuming Relaxes product gained distribution in the total deodorant market, not just drugstores. Calculate net profit dollars and percent assuming advertising expenditures of $ 4,200,000, overhead and general expenses of $1,800,000 and fixed manufacturing costs of $ .30/unit