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Exhibits 1
For Canadian Market
Break even sales = Total Fixed cost / contribution per sales
1370,000 / 0.28
= $ 4,892,857.14
For North America:
As only 22% of the Sale revenue directly goes to the Wholesaler,
So, Contribution reduced by 22%
Contribution of North America = 0.28*.78
= 0.21
Break even sales =
1370,000 / 0.21
= $ 6,523,809.52
Total Market Potential = No. of unit of Hoist sold * Average retail price
= 49000*$10,990
= $ 538,510,000
Total Hoist Percentage per car in North America = No. of hoist Sold / No. of cars on road
= 49000 / (146+14) million cars
= 0.03%