A possible approach to discuss with your interviewer could be:

Electro-Light would need to capture a 12.5 percent market share of electrolyte drinks in order to break even. Therefore, Electro-Light would need to be the number-two product in the market:

1. Electro-Light would need to sell 400 million units in order to break even:

Variable profit per unit = $2.00 – $1.90 = $0.10
Break even units = Total fixed costs/Variable profit per unit = $40 million/$0.10 per unit = 400 million units

2. Electro-Light would need to capture a 12.5 percent market share:

Electrolyte drinks market = 5% x 8,000 million gallons = 400 million gallons
Electro-Light sales in millions of gallons = 400 million units/8 units per gallon = 50 million gallons
Market share = 50 million gallons/400 million gallons = 12.5%

ElectroLight Question 2 Reveal