OtiBox, a manufacturer that sells mobile accessories wants to enter the phone case market in Canada. The total demand for phone cases in Canada is 20 million cases per year. Here is the list of costs: Material: $0.60 per case Labor: $0.05 per case Packaging: $1.05 per case Maritime transport and custom costs: $0.35 per case Ground logistics and distribution cost: $0.55 per case Other variable costs: $1.80 per case Rent and Utilities: $400,000/year Managerial Salaries: $1,200,000 / year Other operating expenses (excluding marketing): $400,000/year Advertising cost: $550,000 / year Retail Price = $35 Retailer Margin 25% on cost. After the first year, they gained 0.625% of the Canadian market. For the second year, they are considering implementing a new strategy. They want to sell their product exclusively through Amazon instead of retailers. According to their estimation, they can spend 200,000 less on advertising ($350,000 instead of $550,000), but they should sell it at a lower price, $22 each. Amazon takes 30% of its selling price. a) How many cases should they sell under this new strategy in Year 2 to make as much as the profit they did in year 1? (2 marks) Hint: Calculate their profit in year 1, and then calculate the number of units they should sell in Year 2 based on this amount of desirable profit. b) If they spend $100,000 on a Google Ads campaign, they can sell 20,000 more products in Year 2. What is $ROMI? (1 mark)