Bob's Inflatable Pools It is October, 2004 and Bob Sacamano, owner of Bob's Inflatable Pools reviews the sales figures from his part-time venture of selling inflatable pools. These pools are approximately ten feet in diameter and are about three feet deep. The pools are easy to set up and can be filled from a garden hose. The pools can be used all summer long; however, the water must be changed at least once a week otherwise it can become quite murky. Although filling the pool from a hose results in rather cold water initially, the pool water does tend to heat up fairly quickly in a couple of hours. Bob sells these pools for $500. Customers in North Bay order them by phone or by email and Bob delivers them directly to the customer's house. The same type of pool is sold at five retail locations in North Bay. Four of these locations are specialized pool stores, the other is Canadian Tire. None of these locations offer delivery. Bob sold 50 pools in North Bay last year, while his competition sold another 950 pools. Bob spends very little on marketing other than placing a couple of advertisements in the North Bay Nugget, putting a quarter page advertisement in the yellow pages, and attending the spring/summer show at the Memorial Centre. He spends about $5000 in total on marketing and another $4000 in operating expenses (this includes the cost of delivering the pools). Bob buys the pools from a supplier in Toronto for $200 each. Bob wants to do better next year and sell more pools. Since he started selling pools in 2000 , there has been steady growth in the total number of inflatable pools sold in North Bay. Growth of 5% is also expected for 2005 . There is no-one selling these pools in New Liskeard, Mattawa, Sturgeon Falls, or Verner and Bob feels that he may be able to handle these markets. It is rumored, however, that Wal-Mart will begin selling a similar type of pool in North Bay retailing for around $400. In addition, the provincial government is debating legislation surrounding the installation of these pools. Regulations require that permanent pools must be enclosed by a fence that is at least three-feet high. Because a child drowned last year in an inflatable pool in Timmins, the government is considering including inflatable pools in this legislation. Questions: 1. What is the primary demand for inflatable pools in NB? 2. What is the selective demand for Bob's pools? 3. What is Bob's margin on each pool? 4. What is Bob's markup \% (on cost)? 5. What is Bob's profit for 2004? 6. What is Bob's Market Share? 7. What is Bob's breakeven price