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A) The Limited is planning a new line of jackets for fall. It plans to sell the jackets for $100. The jackets are being produced in the Dominican Republic. Even though The Limited doesn't own the factory, it's product development and design costs are $400,000. The total cost of the jacket, including transportation to the store, is $45. For this line to be successful, The Limited needs to make $900,000 profit. What is the break-even point in units and dollars? (Please show ALL calculations) B) The Gap, one of The Limited's competitors, is bringing out a similar jacket that will retail for $90. If The Limited wants to match The Gap's price, how many units will it have to sell? (Show calculations if any)

Operation Management, Management Studies

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