Examine the details provided below and answer Questions $1$ and $2.$ ABC Manufacturing Limited $($ABC$),$ a contract manufacturer of automobile service kits, operates three production facilities located at three different geographic regions$-$Facility $1,$ Facility $2,$ and Facility $3$ each specialising in the production of branded brake pads for one of three distinct automobile brands, anonymised as X$,$ Y$,$ and Z$.$ Using a just$-$in$-$time $($JIT$)$ inventory system, Facility $1$ manufactures brake pads for brand X$,$ Facility $2$ for brand Y$,$ and Facility $3$ for brand Z$.2024$: The table below presents the details of the onerations of the three production facilities for the last quarter of $2024$Production facility Number of brake pad kits produced and sold Facility $1$ Facility $2$ Facility $330,00045,000$ Selling price per brake pad kit R$300$ R$50038,700$ R$600$ Direct material cost per brake pad kit R$170$ R$210$ R$260$ Direct labour hours used at the facility $10,00022,50018,000$ Average cost per labour hour R$270$ R$300$ R$360$ Total overhead costs at production facility R$1,500,000$ R$1,800,000$ R$2,200,000$QUESTION $2(12$ Marks$)2\mathrm{.}1.$ To renew the service level agreement with X$,$ Y$,$ and $2,$ ABC Manufacturing Limited plans to propose the integration of servitiation into its business model. This would involve transitioning from supplying only physical products $($brake pads$)$ to offering a range of comprehensive value$-$added services aimed at enhancing customer experience and satisfaction. Critically assess how seritiation could be effectively implemented and discuss the potential outcomes for the company. $(7$ marks$)2\mathrm{.}2.$ To implement the servitsation plan, ABC Manufacturing Limited would need to establish an additional facility at one of its existing locations$-$Facility $1,$ Facility $2,$ or Facility $3$ that will provide maintenance services, product performance monitoring, extended warranties, and tailored support packages for all the automobile brands. The variable and fixed costs associated with the new facility are anticipated to align with the Q$42024$ cost structure of the existing facilities. Discuss the locational break$-$even analysis you would conduct to inform this decision. $(5$ marks$)$