The Company of Corporate Conglomerations (3C) has recently developed a new product. The product is expected to be sold to the consumer at $40 a unit. The dealer margins are estimated to be 25%. 3C gave the following projections for the product's cost: $5 per unit on materials, $3 per unit on labor, and $2 per unit on shipping.

The company is launching an impressive ad campaign to precede the product's release. These costs include $8,000,000 for TV ads, $5,000,000 for magazine and newspaper ads, and $1,750,000 for advertising to retailers.