Question 40 (2 points) How many incremental units of Theta will be sold? 1,200 4,000 6,000 3,000 2,800 Question 41 (2 points) What is ZE's total contribution before introduction of Theta? $2,526,000 $3,850,000 $2,950,000 $3,426,000 Zigzag Electronics (ZE) manufactures a line of wearable devices that are distributed through large specialty electronics stores. The current line consists of two models with price, cost, and volume data as follows: Selling price Variable cost Demand per Model per unit year (Units) per unit to retailers $100 $200 Alpha Beta $50 $130 20,000 15,000 ZE is planning to introduce a third model of the product (Theta), which will be sold to retailers at $150 per unit and has a variable cost of $90 per unit. Demand for the new model is estimated to be 10,000 units. Forty percent (40%) of these are expected to come from the existing two models - 30% from Alpha and 70% from Beta. The remaining 60% is expected to come from competitors' products. ZE will incur a fixed cost of $500,000 to add the new model. Use this information to answer the next five questions. Question 39 (2 points) How many units of Beta will be cannibalized? 1,200 3,000 6,000 2,800 4,000 Use the following information about pricing and channel margins for a product to answer the next four questions. Retail price $40.00 Retailers' margin 30% Wholesalers' margin 20% Manufacturers' margin 40% Question 27 (2 points) How much do retailers pay for one unit of the product? $12 $40 $28 $52 $20 Question 28 (2 points) How much margin do wholesalers earn on each unit of the product? $12.00 $8.00