DOES THE SALES FORCAST MAKES SENSE HERE??????

However, Mr. Clean's Magic Eraser Sponge is most similar to BathGel Shell. The retail price for this product is 10.99$. For the purpose of this hypothetical example, BathGel Shell's retail price will be 9.99$. Considering the intense competition in the cleaning product industry, we would make a safe estimate to produce 10 000 BathGel Shell bottles in the first year, where the production cost for each bottle would be 50$. However, we would have to cover 50k in overhead costs, so to break even in the first year, the total cost would be 1 million with a minimum of 10 000 bottles sold. An extra sale that exceeds this number would be profitable because we would save the 50$ in overhead costs. This assumption is rational because we are in a very competitive industry, even if our product's market size is quite large. People tend to stay with the products they are used to and shy away from trying new products out. The profit margin will be higher if we get a greater demand in the second year.