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Julias Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has an MSRP of $2,500. The cost to produce one unit is

Julias Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has an MSRP of $2,500. The cost to produce one unit is $800. Their fixed costs are $2,000,000. You are responsible for deciding whether you should sell the Lightning via a retailer named Rugged Motors Inc. Rugged typically discounts its products 18% from the MSRP. They are asking for 55% distributor margin.

If Rugged were to be Julia's only distributor what would Julia's break even volume be? (show your work)

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