Jane Walters is now launching her baby bottles, and is partnering with the national baby boutique retailer SnuggleBugz. SnuggleBugz has 75 upscale retail stores across Canada, and each store has approximately 100 unique new parent families shopping in the store each month. Jane feels that this partnership is the right choice to launch her business. As she looks through her numbers, she has the following information: bottles cost her $4.75/unit to manufacture, and packaging and shipping is another $2.15/unit. She's planning on spending $20,000 on advertising, another $15,000 on training and development, and $30,000 on an office space to rent. Jane wants to generate at least $60,000 in profit in her first year as a reasonable salary. Because it's the first year of operations, she's also promised SnuggleBugz an extra $1.25/bottle sold in stores as a trade promotion. She plans to sell each bottle to SnuggleBugz for $13.50/unit, and SnuggleBugz is going to sell them in turn to customers for $20.00/unit.

1. How many units does Jane Walters need to break even?
2. Do you think the break even numbers are feasible, based on the traffic/number of possible shoppers at SnuggleBugz? Why/why not?
3. What percentage is SnuggleBugz marketing up the bottles?
4. What are the margins for SnuggleBugz on the bottles?
5. Should SnuggleBugz charge $20.00 or $19.99 for these bottles, and why?