Being clueless as to your actual product, there's no many answers I can provide.

Her profit will depend on how much she can mark it up from her cost and still get sales. You can only guess what her customers will pay, unless you've been able to sell it above the price that you will charge her for the same item. Her price from you is wholesale. Her price to her customers is retail.

Have you sold it at different prices? If not, you won't have any basis for answering questions on her suggested selling price.

Your question about insurance tells me you feel the need for product liability. If so, you probably shouldn't be selling wholesale or retail until you have acquired the insurance needed.

As for, "what they look like, i really dont know untill i go to the store", I don't understand what you question is. What "they" are you referring to - The nice lady, your product, ???

Proceed with caution.

Dennis