Question: Last year, consumers spent $ 1 , 2 0 0 , 0 0 0 on a product category in which On - the - Spot

Last year, consumers spent $1,200,000 on a product category in which On-the-Spot is one brand. On-the-Spot costs a retailer $2 and normal retail margins for this type of product are 33.3%. On-the-Spots manufacturer is about to launch a nationwide advertising campaign that will bring its fixed costs up to $200,000. Wholesaler margins are 25% and mfr. margins are 66.7%. Margins are calculated as the percentage of each companys own selling price. Assume the retail price is the same for all the products in this category.
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a) What market share must On-the-Spots manufacturer capture to break even?
a) What market share must On-the-Spots manufacturer capture to break even?
10%
20%
30%
40%
50%
None of the above is correct.
I attempted to solve this question but couldn't find the solution.
b) What market share will yield the manufacturer a profit of $150,000?
b) What market share will yield the manufacturer a profit of $150,000?
45%
67.5%
73.5%
87.5%
93%
None of the above is correct.
I attempted to solve this question but couldn't find the solution.

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