Fortitude Group, Inc. receives an initial order of 5,000 VaporVites. The initial 5,000 unit order was received from a Colorado dispensary with 4 stores. Fortitude's cost to manufacture each VaporVites unit is $29.00.

The wholesale cost to the dispensary is $89 or a profit per unit of $60.00 representing $300,000.00 profit for this initial order. Under the terms of the agreement, the dispensary paid a 25% deposit for the initial order with the balance to be paid upon product delivery. The estimated delivery time to the dispensary is April 20, 2014.

The dispensary has an option to purchase an additional 25,000 units within the next 3 months at a 10% discounted wholesale price or $80.10 per unit.