Shannons distributes its beer through a wholesaler, Miller of Denton. The retail selling price for a six-pack of its typical craft beer is $12.00. The retailers cost per six-pack is $8.00. The wholesaler sells the beer to the retailer for this price. Shannons sells a six-pack to the wholesaler for $5.40. Shannons variable costs of production, packaging, and distribution are $3.60 per six-pack. Shannons has the following annual fixed operating and marketing costs:

Question 1

Marketing Costs	$59,488
Consumer Advertising	$34,638
Trade Promotion	$30,000
Sales Promotion	$18,000

What is Shannons annual break-even in six packs of beer sold?

Question 2

Given the above information in Q1, Shannons wants to increase its sales to retailers by 20% in the next year. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales by 20% will be:

Personal Selling Costs	$ 60,000 (exclusive of commission)
Consumer Advertising	$ 60,172
Trade Promotion	$ 41,257
Sales Promotion	$ 25,000

Shannons will need to hire an additional salesperson (paid a salary and commission) and provide some added administrative support. The sales persons salary plus administrative support will cost about $60,000 per year. The sales persons commission will be the equivalent of $0.05 per six-pack sold. The incremental costs of consumer advertising, trade promotion, and sales promotion necessary to support sales in the new market will be substantial as indicated in the table above. How many six-packs must be sold to break-even on the incremental costs that are anticipated?

******ONLY NEED QUESTION 2 ANSWERED PLS*****