Marketing Math Problem: The Marketing Manager of manufacturing company Purduetech Inc. is planning to introduce a new PDA to the market. The PDA will be sold at retail stores at a price of $ 200.00 each. The retail stores require a margin 30%. The wholesaler requires a margin of $40.00 per unit. The PDA market is estimated to be 4,000,000 units per year. The variable manufacturing costs needed to produce a PDA is $55.00. The cost of the machinery needed to produce the PDA is $50,000,000 over ten years. The PDA is going to be sold together with software that costs $5 dollars per PDA produced. The manager plans to do a test market before launching the product that would cost $500,000. In order to help build a premium image for the PDA, the Marketing Manager is considering spending 3,400,000 on advertising. The Manager's salary is $100,000 and the sales personnel of Purduetech Inc. receive a 10% commission on the selling price. . . Summary of Numbers: Selling price of each PDA = $200.00 Retail margin = 30% Wholesale margin = $40.00 Total PDA market is 4,000,000 units per year . Variable manufacturing costs = $55.00 Machinery costs $5,000,000 per year Software costs per PDA - $5.00 Test market costs = $500,000 Advertising costs $3,400,000 Manager's salary = $100,000 Sales personnel receive 10% commission . 1. What unit sales are required for Purduetech Inc. to break even? 2. If the wholesalers demand a $50.00 margin, how many units of the PDA would Purduetech Inc. have to sell to break even