Retail price (unit price) = $76

Unit variable costs = $5

The group president for Household Products Corporations was reviewing price and promotion alternatives for their Blue-Mist, which has struggled to grow market share. The price and promotion alternatives recommended for the product by the brand manager include the possibility of using additional promotion or a price reduction to stimulate sales volume. The current retail price for Blue-Mist is the last two numbers in your Banner ID number. If value of last two numbers is less than 10, multiple the last two digits of your ID by 10. The Unit Variable Costs is the third digit in your Banner ID (ignoring the "@" symbol). For example, if your Banner ID # is: @01565426, then the retail price is the last 2 digits or $26 and variable cost is third digit or $5. @01750009, then last 2 digits are 09, which is less than 10, so multiple by 10 to get retail price. Retail price is $90 and variable cost is third digit or $7. A volume, price, and cost summary for the Blue Mist product follows: Unit Price last two numbers in your Banner ID number (multiple by 10 if less than 10) Unit Variable Costs third digit in your Banner ID Unit Contribution Current Unit Volume 1,200,000 units Current Sales Current Contribution The brand manager recommended to either reduce price by 5 percent or invest $300,000 in advertising. a. What increase in unit sales and dollar sales will be necessary to recoup the $300,000 increase in advertising expenditures for Blue-Mist? b. What increase in unit sales and dollar sales will be necessary to maintain the current level of total contribution dollars if the price of the product is reduced by 5%