Let's say we've developed a new barbecue grill cleaner. It's all-natural and non-toxic, but it really works to get that greasy crud off the metal grill. Our target market is the Whole Foods crowd - those who care about environmental issues and have the money to pay for "green" products. The variable cost per unit to us is $1.57, including packaging, shipping, and so on. Our fixed costs are $3,000 per month.

How should we price this stuff, and why? At the price point you recommend, calculate the time until break even. How much money will we need to have IN HAND when we open our doors, in order to reach that point? Are there any cash flow issues we should consider?

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