MacAllister Inc. manufactures snow blowers. These snow blowers are distributed through both online retailers (about 30%) and traditional retail outlets (the other 70%). The distributors can return any unsold snowblowers for a full refund up to 150 days after the sale. These terms have been offered for many years and historically about 2.5% of the snow blowers are returned. Additionally, MacAllister promises to spend at least $3,000,000 on advertising to promote the brand. In October and November, MacAllister sold $30,000,000 of snowblowers to distributors. These snowblowers cost approximately $10,000,000 to produce.