1) Your roommate, Jill Blalock, purchased a new portable DVD player just before this school term for $80. Shortly after the semester began, her new DVD player was crushed by an errant flying plant during a party at her apartment. Returning the equipment to the retailer, Blalock was informed that the estimated cost of repairs was $65 because the damage was not covered by the manufacturers warranty. Pondering the figures, Blalock was ready to decide to make repairs; after all, she had recently paid $80 for the equipment. However, before making a decision, she asked for your advice. a. Using concepts from this chapter, prepare a brief presentation outlining factors that Blalock should consider in making her decision. b. Continue the presentation in (a) by discussing the options Blalock should consider in making her decision. Start by defi ning a base case against which alternatives can be compared. 2) Michigan Mfg. makes electronic products. Because the employees of one of the companys plants are on strike, the Chicago plant is operating at peak capacity. It makes two electronic products: MP3 players and PDAs. Presently, the company can sell as many of each product as can be made, but making a PDA takes twice as long in production labor time as an MP3 player. Th e companys production capacity is 100,000 labor hours per month. Data on each product are as follows: MP3 players PDAs Sales $70 $108 Variable costs (58) (88) Contribution margin $12 $ 20 Labor hours required 1 2 Fixed costs are $240,000 per month. a. How many of each product should the Chicago plant make? Explain your answer. b. What qualitative factors would you consider in making this product mix decision?Michigan Mfg. makes electronic products. Because the employees of one of the companys plants are on strike, the Chicago plant is operating at peak capacity. It makes two electronic products: MP3 players and PDAs. Presently, the company can sell as many of each product as can be made, but making a PDA takes twice as long in production labor time as an MP3 player. Th e companys production capacity is 100,000 labor hours per month. Data on each product are as follows: MP3 players PDAs Sales $70 $108 Variable costs (58) (88) Contribution margin $12 $ 20 Labor hours required 1 2 Fixed costs are $240,000 per month. a. How many of each product should the Chicago plant make? Explain your answer. b. What qualitative factors would you consider in making this product mix decision