Here is the basic information:

Horatio Alger is the product manager for Brand X, a consumer product with a retail price of $1.20. Retail margins are 35% while wholesalers take an 11.5% margin. Brand X and its direct competitors sell a total of 18 million units annually and Brand X has 22% of this market. Variable manufacturing costs for Brand X are $0.08 per unit and fixed manufacturing costs are $950,000.

The advertising budget for Brand X is $550,000. The Brand X product manager's salary and expenses total $40,000. Salespeople are paid entirely by a 10% commission. Shipping costs, breakage, insurance and other misc. expenses are $0.03 per unit.