CollegeMix: Payback Constraint with Sensitivity Analysis A Daniels marketing grad took a job at a vitamin company, VHealth, and came up with a great new product idea. The idea is to create a vitamin blend targeted towards the needs of college students, to be called "CollegeMix." VHealth would sell CollegeMix through a chain of retailers. VHealth has a corporate policy that new product ideas must achieve payback in two years. CollegeMix details: Package design: $3,000 Vitamin materials per bottle: $4 Bottle cost: .25 each Bottle filling, labeling, boxing: .25 each Fee for selling into distribution channel: $15,000 Stocking/slotting fee: $100,000 Suggested price on shelf: $11.00 Price that VHealth would charge retailer: $9.50 1) How many units per month would they have to sell in order to achieve break-even in two years? 2) Offer a sensitivity analysis to show what the profit would look like at the end of two years at the following sales levels: 500 units per month 800 units per month 1000 units per month 1200 units per month 1500 units per month Show your answer on one page and include print outs of your Excel work as appendices, following "Presenting Analyses in Writing."