Mike Foster, marketing manager for Big Time Sports Products, Inc. (BTSP), is thinking about how the changes taking place among retailers in his channel might impact his strategy. BTSP is a producer of different lines of sport products. Mike is looking for alternative ways to make money Mike is considering a new strategy to increase sales of tennis balls and a new tennis rackets. The basic idea is to sell tennis balls in large quantities to nonprofit groups who resell the balls to raise money. For example, a service organization at a local college bought 2,000 tennis balls printed with the college logo. BTSP charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print the logo. The service group plans to resell the tennis balls for $2.50 each and contribute the profits to a shelter for the homeless. BTSP is considering adding tennis racquets to the product lines it produces. This would require a $500,000 modification to its factory as well as the purchase of new equipment that costs $1,500,000. The variable cost to produce a tennis racquet would be $45, but Mike thinks that BTSP could sell the racquet at a wholesale price of $60. However, the President thinks that the tennis racquet is a superior product and that BTSP should sell it for $99.99 to upscale country clubs only. The higher price would give a prestige image. However, if BTSP sells the racquet at the lower price, many other retailers might decide to carry it. Answer Questions based on the above scenario (10 pts) 4. If BTSP produces tennis racquets, how many racquets must it sell at $60.00 and $99.99 to break even? Breakeven units at 60.00 Breakeven units at 99.99 . Which price do you recommend and why? 5. If BTSP wants to make at least $35,000 profit of the racquets, at a selling price of $60.00 what would the breakeven quantity be (5 pts)