You have just been promoted to product manager for Smith's company brand called Smith's Exelcor Drink. The product is currently selling at a retail price of $19.99. Retail margins on the product are 40%, while wholesalers take a 20% margin. Smith and its direct competitors sell a total of 300 million units annually; Smith has 30% of this market. Variable manufacturing costs for Smith are $2.25 per unit. Fixed manufacturing costs are $950,000. The current advertising budget for Smith is $10,000,000. Salespeople are paid entirely by a 9.5% commission. Shipping costs, breakage, insurance are $4.35 per unit