Last year, consumers spent $1,200,000 on a product category in which On-the-Spot is one brand. On-the-Spot costs a retailer $2 and normal retail margins for this type of product are 33%. On-the-Spots manufacturer is about to launch a nation-wide advertising campaign that will bring its fixed costs up to $200,000. Wholesaler margins are 25% and mfr. margins are 66%. Margins are calculated as the percentage of each companys own selling price. 1) What market share must On-the-Spots manufacturer capture to break even?

2) What market share will yield the manufacturer a profit of $150,000?