Answer the following questions: (a) J.Crew is planning a new line of jackets for fall....
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Answer the following questions: (a) J.Crew is planning a new line of jackets for fall. It plans to sell the jackets for $100. It is having the jackets produced in the Dominican Republic. Although J. Crew does not own the factory, its product development and design costs are $400,000. The total cost of the jacket, including transportation to the stores, is $45. For this line to be successful, The Limited needs to make $900,000 profit. What is its break-even point in units and dollars? (b) The buyer has just found out that The Gap, one of J. Crews major competitors, is bringing out a similar jacket that will retail for $90. If J. Crew wishes to match The Gap's price, how many units will it have to sell?
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