You are analyzing Quaker Instant Oatmeal as a consultant. Ithaca Grocery sells a box of Plain(unflavored) Quaker Instant Oats for $2.50 to consumers. The owner tells you that she gets a 30% margin on each package. The local distributor for Quaker, Ithaca Snack Company, takes a 20% margin. The manager of the Quaker Oatmeal plant gives you the following data about the production of the cereal. There are no other relevant costs. Product line workers and managers (includes salary & benefits): $300,000/year Advertising: $2,000,000 per year Oatmeal ingredient: $0.50/box Individual wrappers: $0.05/packet. Each box contains 8 packets. Delivery: $0.15 per box)

1. What is the selling price from Quaker to Ithaca Snack Company for a box of oatmeal?

2. Assume that all oatmeal produced at this plant is sold under the same distribution agreement, price, and margins as Ithaca Grocery. What is Quaker's unit contribution for a box of oatmeal?

3. What is the break-even volume for Plain Oatmeal?

4. The manager of this Plain Oatmeal product indicates that Quaker wishes to make $12,000,000 in profit each year. How many boxes of Plain Oatmeal must they sell in order to achieve this amount of profit?