Jenny Molson (the manufacturer) was preparing a new product analysis to evaluate its profitability. On the basis of extensive consumer research, she had decided to sell Brand X (i.e. the new product) at $20 retail. In this market, retailers expected a 30% markup/margin on their cost (there is no wholesaler). Brand X's variable costs are $10.50 per unit, and the total fixed costs are estimated to be $80,000. The forecasted volume at the $20 retail price is 17,000 units.

A) Will Jenny's product make a profit with this planned selling price? If YES, how much? If NO, how much of a loss would there be? (Answer: Yes, profit will be $2957.28)

In year 2, Jenny plans to invest in a new salesperson who's paid solely on commission, i.e. for each unit sold, the salesperson gets 10% of the retailprice. If this new salesperson is hired. Jenny expects a 30% increase in units sold.

B) What will the ROMI be for the additional salesperson? (144%)

Please show me the solutions step by step, thank you!