Tostitos is selling jars of salsa via the supermarket channel at a retail price of $$4\mathrm{.}00.$

$($Ignore all other sizes and products.$)$ They currently offer $30\%$ retailer margins, and there

is no wholesaler. Variable cost per jar is $$1\mathrm{.}75.$ Their annual fixed cost are $$3$ million.

a$.$ What is the manufacturer price $($i$.$e$.,$ the price Tostitos sells the salsa for to the

retailer$)?$ What is Tostitos$$ contribution per unit? $[$Level $1]$

b$.$ Tostitos is planning to increase their manufacturer$$s price by $$0\mathrm{.}30.$ Assuming

that retailers want to maintain a $30\%$ retailer margin, what is the new retail price

$($rounded to the nearest $10$ cents$)?[$Level $1]$

c$.$ If sales are expected to decrease by $20\%$ as a result of the price increase, is this a

good idea for Tostitos $($financially speaking, assuming no other impacts$/$

changes$)?[$Level $2$