Little nitpick - the PPI (not the DPI) resolution should be twice
the lpi

It is a pretty common misconception that PPI and DPI
are the same, and while with some printers (Dye-Sub for example)
they can be, they aren't necessarilly equivalents.
A pixel is a picture element that contains the full range of
colours that the device can represent. The resolution that you set
in Photoshop is the numbers of pixels per inch. A dot, on the
other hand, is the fundamental unit that forms an image on a
particular device. On a printer that forms shades using dithering
(eg laser, ink-jet, etc.), a pixel consists of a multitude of dots
- each dot is basically a droplet of ink/toner, and in order to
generate the full range of colours a variable number of these dots
are layed out. In a printer that fully relies on dithering to
represent the range of colours, the number of dots per pixel
determines the number of shades it can produce. For example,
Epson's high end printers have ratings of 2880x1440 DPI, however
they can only deliver a resolution of
360x360PPI.
Hope this helps