Product X is a consumer product with retail price of $7.99. Retailers margin (based on selling price to consumers) is 25%. Retailer purchases product from manufacturer. The fixed costs involved in manufacturing product X are $1,500,000 and the variable costs are $0.82 per unit. The advertising budget is $1,800,000. Miscellaneous variable costs (i.e., shipping and handling) are $0.06 per unit. Salespeople are paid entirely by a 12% commission based on manufacturers price. Product managers salary and expenses are $90,000. (you don't need current sales volume)

1. What is the manufacturers unit margin for Product X?
2. What is product Xs break-even volume?
3. If manufacturer doubles its advertising expenditures, estimate the increase in sales over current volume needed to maintain the current profit level.
4. Calculate the increase in sales over the current volume needed to maintain current profit level if the manufacturer lowers price by 25%.