. Executives at Microsoft have developed a new tablet geared towards the college-student demographic. The following financial information pertains to the new tablet. The product can be purchased from major retailers with a 4.3% markup, or from a Microsoft Store (no markup).

Intel Processor and mother board ...............................................$200/unit

Screen .........................................................................................$180/unit

Assembly & testing (direct labor) ..................................................$200/unit

Advertising and promotion (throughout the launch)...................$3,000,000

New machines and factory overhead ...........................................$500,000

Advertising and promotion (prior to the launch)$1,000,000

Units planned to be sold1,000,000

Selling Price .....................................................................................$1,050

Calculate the following:

a. Contribution units/percentage for the tablets being sold through a retailer, and for those sold through the Microsoft Store. Interpret your findings.

b. Break-even (units/dollars) for each distribution strategy (retailer vs. companys store)

d. What is the difference in profit (or loss) between sales through Microsofts Store and through traditional retailers?