QUESTION: Foods Inc (FI) sells 10 million units per year of its only product (SuperFood) through a major retailer. SuperFoods' retail price is $12 per unit which included a margin to the retailer of 15%. SuperFoods' manufacturing cost is $6 per unit. In order to promote sales, FI pays a sales broker 5% of the retail price of each unit sold. FI spends $7,200,000 per year in fixed costs (i.e. advertising, administrative costs and rent of the production facility). a) Calculate SuperFoods' per unit variable cost (15 points) I b) Calculate SuperFoods' unit contribution (15 points) Calculate SuperFoods's Break Even Volume (30 points) Compare the BEV calculated above with the actual sales of SuperFood. Is FI making a profit? Why? (40 points)