SnowTime produces a seasonal snow jack at a production cost of $80 per unit, and it is sold to a retailer, Mazy Clothing, at a wholesale price $125. The product has a salvage value of $20 for SnowTime if it is unsold after the season. Mazy sells the product at $160 per unit and sells the leftover products through a secondary channel for $60 per unit.

1. What is the critical value for the supply chain?