$4.$ After spending $$500,000$ in research and development, Snapple has developed a new high energy drink. It$$s called POW. The company plans to use a coupon in local newspaper fliers to promote the brand. They will only be covering $75\%$ of the US market with their advertisements and distribution. The total US market for energy drinks is estimated to be $24$ million cans. The coupon is worth $$0\mathrm{.}25$ and only $20\%$ of purchases are expected to redeem the coupon. The cost of the advertising campaign is $$250,000.$ Other fixed overhead costs are expected to be $$100,000$ per year.

Here$$s what we know:

Suggested Retail Price $$0\mathrm{.}50$ bottle

Cost of Materials $$0\mathrm{.}18/$Can

Cost of Labor $$\mathrm{.}07/$can

Retail Margin $20\%$ off retail price

Wholesaler Margin $10\%$ of the retailer$$s cost

a$.$ What is the price Snapple Charges to Wholesaler?

b$.$ What is the Contribution per unit for POW

c$.$ What is the break even volume in the first year in units?

d$.$ What is the first year breakeven in terms of share of served market?