Lady Gaga has joined the 3rd Times a Charm a company. She is responsible for managing a consumer packaged product with a retail price of $2.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. 3rd Times a Charm product and the direct competitors for this product sell a total of 40 million units annually, and 3rd Times a Charm has 24% market share of this total. Variable manufacturing costs for the product are $0.09 per unit. Fixed manufacturing costs to produce this product are $1,800,000. The advertising budget for the product is $1,000,000. Gagas ridiculously low salary and expenses total $70,000. Her salespeople are paid entirely by a 10% commission on revenue. Shipping costs, breakage, insurance, and other miscellaneous costs are $0.04 per unit.

Upon reflection, Gaga decides not to increase her products advertising budget and keeps it at $1,000,000. Instead, she listens to her neighbor John Legend and decides to give retailers an incentive to promote her product by raising the margin from 33% to 40%. The margin increase would be accomplished by lowering the price of the product to retailers. Wholesaler margins would remain at 12%

A) If retailer margins are raised to 40% next year, how many units of Gagas product will have to be sold to break even?

B) How many units of Gagas product will need to be sold next year in order to achieve the same profit that the product achieved this year?

C) What will the products market share have to be next year for its profit to be the same as this year?

D) What will the products market share have to be for it to generate a profit of $700,000?