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IKEA is planning to launch a new mattress product. The mattress will sell for $500. The product cost is $300. Please answer the following questions:

IKEA is planning to launch a new mattress product. The mattress will sell for $500. The product cost is $300. Please answer the following questions:

a.    What is IKEA's per unit profit margin for this product in dollars and percentage?

b.   If IKEA were going to spend $1MM to advertise the product, how many units does IKEA need to sell to break even? What do dollar sales need to be to break even?

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