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Total Fixed Cost Unit Selling Price Unit Variable Cost Break-Even Units Existing Product New Product Existing Product New Product MSRP Volume Discount Unit Cost

Total Fixed Cost Unit Selling Price Unit Variable Cost Break-Even Units Existing Product New Product Existing Product New Product MSRP Volume Discount Unit Cost $5.39 $4.99 35% 35% $1.49 $0.99 Promotional Allowance 15% 20% Advertising & Promotion $25M $20M Allocated Fixed Costs $68M $12M Projected Unit Sales 115M 10M

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