Robert Sommerstone has asked you to help him with the financial aspects of the launch. He would like to provide HydroCan with information regarding the potential of both the consumer and commercial markets as well as the feasibility of pursuing them. Using the financial information provided in the case, Robert asks you to determine the following:

1. Estimate the current Canadian market size in terms of revenue for

a) the consumer market and

b) the commercial market.

2. Calculate the final end price of StaGreen to

a) consumers for all types of retail outlets and

b) commercial users.

3. Comment on the pricing strategy employed by HydroCan and evaluate how appropriate it is for each market.

4. At what point will HydroCan break-even in

a) the consumer market and

b) the commercial market?

5. Calculate the break-even point in terms of both sales revenue and units sold (kilograms).

6. How many months production does this represent? Should the founding members be paid salaries in the first year?