$1.$ Is Dr$.$ John$$s Spinbrush profitable at the time of the case?

$$In estimating SpinBrush$$s profitability, assume an average retail selling price per unit of $$6$ and that retailers enjoy a $50\%$ gross margin on the product. Assume that Spinbrush$$s cost of goods sold is $50\%$ of revenue. Assume that the fully$-$loaded, annual cost of Spinbrush$$s nine employees is $$1\mathrm{.}25$ million, and $$500$K in other overhead expenses.

$2.$ Put yourself in the shoes of one of the large companies who might buy Dr$.$ John$$s: How would you go about assigning a target price for an acquisition? And what is that target price?

$3.$ How did John Osher create the value you assigned in Question $2$ above? What went right? What can still go wrong?

$4.$ What are the key elements of the business model that Osher constructed to mitigate risk? Is Osher following his own advice about $$Mistakes Entrepreneurs Do Not Have To Make$($pages $3-4$ of case$)?$