Question: Question 1 (16 points) You are the operations manager at Zara, Lebanon. The Managing Director is about to introduce the 2011 summer collection for the

Question 1 (16 points) You are the operations
Question 1 (16 points) You are the operations manager at Zara, Lebanon. The Managing Director is about to introduce the 2011 summer collection for the three categories: Women, Kids and Men. She wants to be sure that these various categories are profitable (i.e. they reach breakeven point during the season). At a recent meeting, she asked you to develop a break-even analysis. Each category will be considered as one product. The estimated variable costs for each category are as follows: $150 for Women, $75 for Kids and $50 for Men. The expected marginal revenues as set by sales are: $350 for Women, $200 for kids, and $150 for Men. Additional costs include the salaries for designers $40,000 for each category; rental space: 5,000 square meters manufacturing space per category at $6 per square meter. Based on a marketing study, the sales of Women, Kids and Men should account for 45%, 35% and 20% of total sales respectively. a. (6 points) What is your break-eveh point in dollars for all categories combined

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