Note= Here Kd is kuwai dinar(Currency of kuwait)

Exercise 3- Problem solving (30 points- 15 points each) Lorna Jane brand is interested in developing a line of sustainable leggings made from recycled materials. Each pair of leggings is sold for 25KD. The cost of developing this line is KD 200,000. This includes salaries for the design team, rent for the factory, machinery for recycling plastic and testing the product. The variable cost is KD10/pair of jeans. a. How many leggings does Lorna Jane have to sell to breakeven on its total investment? Show the formula used and your calculation. b. Are the costs listed in the exercise (salaries for the design team, rent for the factory, machinery for recycling plastic and testing the product) fixed costs or variable costs? Justify your