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.

3C would also eventually like to release a cheaper product in the same line as the aforementioned new product. The cheaper product will cost the consumer $30 a unit. The dealer margins are expected to be 30%. The product will cost 3C $3 per unit for materials, $2 per unit for labor, and the standard $2 per unit for shipping.