PLEASE SHOW WORK & GIVE AN EXPLANATION SO I CAN UNDERSTAND.

INSTRUCTIONS: Complete the following problems based on your review and understanding of Appendix 3 in the textbook. Show ALL WORK and calculation steps in order to get full credit. You may type or hand write the assignment then upload it in Blackboard by the due date. (1) Determine the market potential for a product that has 35 million prospective buyers who purchase an average of 3 per year and $38.50 price averages. How many units must a company sell if it desires a 15% share of this market? (2) Reliant Chairs sells designer seating to consumers through retail outlets. Total industry sales for the market last year were $128 million, with Reliant's sales representing 6.5% of that total. Contribution margin is 18%. Reliant's sales force calls on retail outlets and each sales rep earns $45,500 per year, plus 2.5% commission on all sales. Retailers receive a 38% margin on selling price and generate average revenue of $12,000 per outlet for Reliant. a. The marketing manager has suggested increasing customer advertising by $200,000. By how much would dollar sales need to increase to break even on this expenditure? What increase in overall market share does this represent? b. Another suggestion is to hire 3 more sales representatives to gain new consumer retail accounts. How many new retail outlets would be necessary to break even on the increased cost of adding the 3 sales reps? C. A final suggestion is to make a 10% price reduction across the board. By how much would dollar sales need to increase to maintain Reliant's current contribution margin? (HINT: See endnote 6 on p.621 of the textbook set price = $1) = d. Which suggestion do you think Reliant should implement? Explain your recommendation. e