Marketing Homework that I do not understand.

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Marketing Arithmetic Exercise 2 . . You have just become a product manager for brand vaporware. Vaporware is a consumer product with a retail price of $1.00, Retail margins on the product are 33% on selling price, while wholesalers take a 12% margin on selling price. Vaporware and its direct competitors sell a total of 20 million units annually; Vaporware has 24% of this market Variable manufacturing costs for Vaporware are 5.09 per unit. Fixed manufacturing costs are $900,000 The advertising budget for Vaporware is $500,000. The Vaporware product manager's salary and expenses total $ 35,000. Salespeople are paid entirely by a 10% commission. Shipping costs, breakage, and insurance are 5.02 per unit. 1. What is the unit contribution for Vaporware? 2. What is the Vaporware break-even point? 3. What market share does Vaporware need to break even? 4. What is Vaporware profit impact? 5. Total market demand is expected to increase to 23 million units next year. You are considering raising his advertising budget to 1 million a. If the advertising budget is raised, how many units will Vaporware have to sell in order to break even? b. How many units will Vaporwarc have to sell in order to achieve the same profit impact as it did last year? c. What will Vaporware's market share have to be next year for its profit impact to be the same as this year? d. What will Vaporward 's market sharo have to be for it to have a $1 million profit impact? 6. Upon reflection, you decide not to increase Vaporware's advertising budget. Instead, you consider offering retailers an incentive to promote Vaporware by raising their margins 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%. The retail price remains at $1.00, a. If retailer margins are raised to 40% next year, how many units will Vaporware have to sell to break even? b. How many units will Vaporware have to sell to achieve the same profit impact next year as it did this year? c. What would Vaporwarc's market share have to be for its profit impact to remain at this year's level? d. What would Vaporware's market share have to be for it to generate a profit impact of $350,000? 5