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Following question. Right Clothes Right Weather Pte Ltd {RCRW'} is planning to make and sell a range of coats for wear during exercise. There are

Following question.

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Right Clothes Right Weather Pte Ltd {RCRW'} is planning to make and sell a range of coats for wear during exercise. There are 3 coats in the range: the Lighprint (LS), the Windy Walker WW): 355 tbs 129m (DC)- Fixed costs include retail premises, sales assistant salaries, a manufacturing unit, machinery and factory staff. In total, these xed costs are anticipated to be $4 million per calendar month for up to 9,000 items manufactured. After this point, extra factory and retail staff are required, which push up the xed costs to $5.25 million per month. Each LS is planned to sell for $400 and includes $150 variable costs. The W is to be sold for $700 per item including variable costs of $300. The DC is a specialised product and will sell for $1,500 with variable costs of $750 per item. Market research into the active sportswear market shows that for ever}' 3 LS sold, there is likely to be 5 WW and 1 DC sold. RCRW will only consider going ahead if they can make a prot of at least $3.5 million per month. You should assume the coats will he sold in these stande ratios. Also assume production = sales. Required: (:1) Determine how many break-even points of output there are for the production and sale of coats. You should support your answer with appropriate calculations. (In) For each break-even point you nd: (3}) Determine the number of each type of coat that must be sold to break-even, and the corresponding break-even sales revenue for each type of coat and in total. (ii) Determine the number of each type of coat that must be sold to make the desired prot of $3.5 million per month (c) Discuss FOUR limitations of the analysis you performed in part (b)

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