Financial/Analytical Question #1 (FAQM1): note that there are conceptual issues in each of the Financial/Analytical Assignments. You should specifically identify any assumptions that you make and justify the decision(s) made. Hints: A. THE MANUFACTURER'S PRICE NEEDS TO BE ADJUSTED FROM THE RETAIL PRICE TO REFLECT THE COSTS OF DISTRIBUTION; B. CAREFULLY REVIEW THE DEFINITION OF "MARKET" IN DETERMINING THE "BREAK EVEN MARKET SHARE", C. DISTINGUISH BETWEEN RELEVANT AND SUNK COSTS. 1. Rosenberg Manufacturing Corp. is considering marketing their new hearing aid in the city of "Big Smoke". The primary target market for this device is the hearing impaired over the age of 60 years. As she considers the possibility, the VP/Marketing reviews the following data for FY 2020: Retail price : $399 : $399 Retail margin : 47.5% Wholesale margin : 22.5% R & D on hearing aid, FY's 2017, 2018 : $109,000 Y Introductory promotional outlays, FY2020: $159,000 Rosenberg's fixed manufacturing costs : $149,000 per year (FY 2020) Variable manufacturing costs/unit : $79 Retailer's salesperson's commission :2% of retailer's selling price Rosenberg's sales commission paid : 5% of manufacturer's selling price Population of Big Smoke 2,750,000 Proportion of population over 60 years : 22.5% a) What is Rosenberg's (show your logic) 0 unit contribution? (4) contribution margin? (4) (b) How many units must Rosenberg sell in the first year (2020) to break even? Carefully explain, including any assumptions that you make. (6) If 20% of the "over 60" population is hearing impaired, what is Rosenborg's break even market share in 20202 (Identify and explain any assumption(s) that are necessary). (6)