Instructions *As a team, please develop a marketing memo to the Director of Marketing for the LusterLast brand of haircare products. If the team is not aware of what a business memo looks like, they should consult https://owl.purdue.edu/. The team has been charged with reviewing quarterly results for the LusterLast moisturizing shampoo, called SatinSmooth. The product is new to the line and is sold mostly in drugstores and grocery stores. The product that has been on store shelves for a year has kept pace with movement through the product life cycle, and though the category is in the introductory phase, it has shown a profit, but little increase in customer selection through the year. The shampoos claim to fame is its formulation of shea butter from Senegal that strengthens hair follicles and Brazilian oil emollients that deep condition the hair after shampooing leaving the hair thick, shiny, and easy to manage. No other product on the market has these ingredients, and it is predicted that the company has another year before competitors decide to offer their version of the product and solicit the attention of the target customer segment, which at this time are women between the age of 16 to 75, who are image-conscious, not particularly price-sensitive, and shop at their local drugstore. Further, they tend to rely on friends, family, and their hairdresser to recommend health and beauty aids. The brands closest competitive rival is BetterHair with their product: ShineStyle does not have a shampoo with the shea butter, but they do have a product that addresses weakened hair and maintenance ease. Nonetheless, their shampoo does not have natural ingredients. The active ingredients in ShineStyle are synthetic, that is, manmade. The ingredients in their formula most often highlighted in their advertising are patented. They are NutraFeed and ShineHold. Take a look at the provided numbers, calculate the below, and offer recommendations as to what the company should do.

SatinSmooth
Unit Price ($)	Unit Cost ($)	Total Forecast Revenue		Total Forecast Unit Sales	Variable Cost ($) Per Unit	Fixed Costs ($)	Marketing Spending ($)
$2.59	$1.30	$85,000		32,819	$5	$35,000	$25,000
ShineStyle
Unit Price ($)	Unit Cost ($)	Total Forecast Revenue		Total Forecast Unit Sales	Variable Cost ($) Per Unit	Fixed Cost ($)	Marketing Spending ($)
$3.25	$1.63	$125,000		38,462	$5	$40,000	$20,000

In the memo, address the following:

1. Given the Fixed costs, what is the Break-Even in terms of volume for both SatinSmooth and ShineStyle?

2. What is the Break-Even for both products in terms of revenue?

3. Based on projected Marketing Spending and Revenue, what should you expect Marketing Spending As a Percentage of Sales to be for both products?

4. What is the Contribution per Unit for both products?

5. Senior management of LusterLast wants their shampoo to gain in profitability and market share in terms of units sold. Based on the numbers provided, and the metrics introduced in this module, what would be your recommendation?