1. Omnitec Systems manufactures virtual computers. The total market for virtual computers is 10 million units. Its existing product Gallactic currently enjoys a market share of 5 million units. Omnitec Systems wants to launch a new product Horizon at a retail price of $200. About 1 million of Gallactics sales is expected to be cannibalized due to the launch of Horizon. Gallactics average contribution margin from the cannibalized units was expected to be $20. Advertising and Promotion cost of Horizon is estimated at $5 million. The distribution channel margin was typically one-third of the retail price. Assuming a margin of 0.4, calculate the Breakeven Market Share for Horizon. (10 points)

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