Here is what he knows: a) The market demand for the company's product in 2023 is 2 million households. b) Households will buy 2 units per year. c) For the first year in the market, a unit market share of 13% is expected. d) The average selling price is $12.00 per unit in 2023. e) The variable cost of goods sold is $5.00 per unit. f) Variable marketing and selling expenses (commissions and broker fees) are projected at 5% of the average selling price. g) Variable packaging costs are forecasted at $1.85 per unit. h) Fixed marketing costs are $400,000 per year. i) Fixed manufacturing overhead costs are $800,000 per year. What should Bobby Singer tell his CEO? 1 MARKET DYNAMICS: 2 Market Size - Households 3 Units/Household 4 Market Share 5 Selling price/unit 6 Variable COGS per unit 7 Variable MSE/unit 8 Variable Packaging/unit 9 Fixed Marketing 10 Fixed Manufacturing Overhead 12 Market Size in Units 13 Units sold 13 15 FINANCIAL MODEL: 16 Sales 2023TOTAL(inthousands)perunit 17. Variable Costs 18 Variable COGS (total) 19 Variable MSE (total) 20 Variable Packaging (total) 21 Total Variable Costs 22 Contribution Margin 23 Fixed Costs 24 Marketing Manufacturing Overhead Total Fixed Costs Operating Income 28 29 Breakeven point/units 30 Breakeven point/\$