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Dollar Sales Volume to Cover Margin

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Snuggle-Up is a "wearable" blanket with sleeves that has been sold directly to final customers through television advertising. It is now going to be distributed through mass merchandisers. The expected retail price will be $14.95, with an average 10% margin to distributors. Variable costs are $6.73 each. The manufacturer is considering a $5 million dollar promotion program to support this new channel. What dollar sales volume will be required at both the manufacturer and retail level to cover this expenditure?

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