1. You work for the residential mortgage lending division of a leading financial institution. This institution also separately operates a division specializing in commercial space rental loans. Recently the residential mortgage lending division has been largely unprofitable and the new CEO has provided division heads with the following ultimatum: "...hive off money-losing businesses and deliver profits within a year - or else resign." You notice that due to the nature of products offered by the two lending divisions there is a cost saving strategy that could be adopted by your institution. Based on your observation make a detailed argument to the CEO explaining why your division shouldn't be shut down and what strategy the company should adopt to turn losses into profits. (5 points) 2. Kitchen Helper Company decides to produce and sell food blenders and is considering three different types of production facilities or plants. Plant A is a labor-intensive facility, employing relatively little specialized capital equipment. Plant B is a semi-automated facility that would employ less labor than A but would also have higher capital equipment costs. Plant C is a completely automated facility using much more high-cost, high-technology capital equipment and even less labor than B. Information about production levels and associated costs of these three different types of plants are given in the table below: Output Total Cost ($)