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3. Calculate the expected EBIT and ROI under both plans and the levels of risk associated with each plan. Also calculate the break-even point and

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3. Calculate the expected EBIT and ROI under both plans and the levels of risk associated with each plan. Also calculate the break-even point and the EBIT and ROI indifference points. Based on the risk and return trade-offs, determine which production facility should be recom- mended for Fit Trainer. Figure 1 has been provided to help you answer this question. (Note: The final decision is a joint decision that involves both production and financing decisions, but for this question think only about the issues involved with the production decision.)

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