why will bozewealth acheive year 1 expected profitibilty? and what is the minimum number of bags it must sell to reach year 1 profitibilty objective?

The Bozwealth Corporation has been a successful company, primarily in the United States, for more than one hundred-fifty years. During the current year the cheddaracho category is expected to sell approximately 418,500,000 units/bags, representing 27% share of market. The Bozewealth Corporation is considering the introduction of a product addition (i.e. not replacement) that would involve a cheddaracho dry flavor coating being added to the current potato chip product. A brief test market has been completed at a total cost of $75,000 In addition to relatively encouraging test market results, the cheddaracho product is the result of at least 4 years of conscientious research and development efforts. The Bozewealth Corporation incurred a research and development cost of $500,000 to develop this product. With positive test market results and conscientious R&D. Mr. Bozewealth is inclined to introduce the cheddaracho product even though he has concern that only 225,000 bags can be considered new tor incremental volume. The Bozewealth Corporation has a network of production plants that are geographically disbursed across the United States.. This allows the Bozewealth Corporation to serve geographically dispersed wholesalers. The wholesalers then sell directly to retailers. The product will be sold in the United States for $3.95 per bag at retail. This selling price reflects a 2.3% retailer mark-up, which is generally standard for products in this category. Accordingly, wholesalers take a 4.1% mark-up. The costs to the Bozewealth Corporation related to the cheddaracho product include a fixed cost [related to operations] of $300,000, promotion cost of 100,000, per/unit cost of goods sold: $1.45, and per/unit packaging cost: $1.0o. The Bozewealth Corporation is very excited about the cheddaracho line extension. In Year 1 the line extension is expected to sell 800,000 bags and achieve a profit of $110,000. In year 2, the line extension is expected to sell 910,000 bags, and achieve a profit of $243,000