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H&M announced they plan to slow their rate of expansion, but not stop opening new stores....

H&M announced they plan to slow their rate of expansion, but not stop opening new stores. Assume annual fixed costs to operate a new store are expected to total $1,800,000. The average selling price of an item is $60 with an average variable cost of $25 each. Answer the following and show your work in each case.
a. How many items must a new location sell in a year in order to break even?
b. Calculate the average margin based on the information above. If they wanted to add a new Item to the store with a variable cost of $40 and maintain the same percentage margin, what would the retail price be?
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