Problem 4 A fashion label is considering inclusive sizing which would expand its offerings to plus size and petite clothing. It estimates that a move to inclusive sizing would have an initial cost of $650,000 and would require an additional annual investment $55,000 per year. If each piece of inclusively sized clothing sold generates on average $27.9 of revenue, a. What is the minimum number of pieces of inclusive sized clothing would the fashion label need to sell per year to break even in 7 years assuming their MARR is 7.9%? b. The fashion retail is also less certain about the annual costs and hires an operations manager who predicts that the annual costs is either $55,000, $25,000 or $120,000 with associated probabilities of 0.6, 0.3 and 0.1 respectively. If the selling price of clothing remains same what is the expected value of the break-even point, in terms of the sale volume? (In other words, what is the expected number of pieces of inclusive sized clothing that the fashion label needs to sell per year to break even in same time?)