Marketing Arithmetic Questions (20 points) Chemists at Citrus Industries have developed a new breakfast drink. The drink, called Zap will be packaged in an 8-ounce can and will be introduced to the breakfast drink market, which is estimated to be equivalent to 20 million eight-ounce cans nationally for next year. Zap is estimated to obtain 25% of this market during the next year, Management has decided that the retail price to the consumer for an eight-ounce can will be $0.5. The company intends to give retailers a margin of 20% and wholesalers a margin of 10%. Variable manufacturing costs for Zap are $0.16 for materials and $0.06 for labor for each eight-ounce can. Fixed manufacturing costs are $90,000 per year. The advertising budget for Zap is $150,000. The managers' salaries total $100,000 per year. Salespeople are paid entirely by a 5% commission. Shipping costs, breakage, insurance, and so forth are $0.02 per unit. 1. What will be the unit contribution for Zap? (10 points) 2. What will be Zap's break-even point? (4 points) 3. That market share does Zap need to even next year? (2 point) 4. What will be Zap's profit next year? (2 points) 5. What will Zap's market share have to be for it to have a $1 million profit? (2 points)