1. Satellite Imaging (SD) is considering launching a new satellite receiver that will be sold through major electronic retailers in the US. The initial investment that SD will need to invest if they develop the Xgen1 is $7.8 million. Research suggests that high-end electronic consumers are willing to pay $695 for the HD receiver/DVD recorder. The mark-up for retailers is 28% on selling price, while wholesalers earn a margin of 9%. Other data concerning the Xgen1 are as follows.

Expense	Cost
Advertising/promotion	$875,000
Overhead	$533,000
Packaging	$4.865/unit
Components	$197.56/unit
Assembly of components	$92.56/unit
Supplemental goods (manual, cables, etc)	$3.292/unit

Calculate the following:

1. Retailer cost.
2. Wholesaler cost.
3. Contribution per unit.
4. Contribution margin.
5. Break-even unit volume.
6. Necessary unit volume to achieve a $500,000 profit.