.AIyx Jones has been RViewing possible manufacturing sites the Mend Messenger bag. Mend is a social entetprise founded by Invisible Children, based in San Diego (USA) and geared toward improving the quality of life for women in Uganda. After a career in retall fashion, Alyx Jones joined Mend in 2012 to support social causes using her busmess school educati01L me Messenger, which retails for LJS$2jO, is an 180z (0.5kg) canvas bag, hannade by women m Gulu, a city in nonhem UgancLa_ Mend 's lease on the cunent factory is about to end given the increased ckmand for the Messenger, the premises ar no longer Afie visiting several hcilities, Alyx muows the options to thre sites. Option I would have annual Exed coqs of $130,500 and is expected to proe Messenger bays at a variable cost of SI 05 unit. Option 2 would have amlual fixed costs of $200,000 and a vanable cost of $65 per Option 3 has fixed costs of 950,000 and a variable cost of $45 pa unit. FEKed costs include lease payments, utilities, insurance, security and the supervisor's salary'. Variable costs Include matenals, labour and some overhead nie annual production capacities of Ch'tions I, 2 and 3 are 5,000 bags, 10,000 bags and 25,000 bags, respectively _ Offer some reasons as to why the coq structures across the three fictoty sites _ What is the bleak-even point in sales revalues and units for each option? What are the required sales to achieve a targeted annual suplus of $200, 000? 4. If expected sales ar 4,000 bags, what is the margin of safety (in mits) for each option? If expected sales ar 4,000 bags, which option maxim_izes tl surplus for Mend? 6_ How much is the surplus for this option? At what level of sales (in bags) will Mend be indifferent between CVtious 2 and 3? What decision tule minimizes coq.s for a given expected sales units? What other fict0 are relevant in mahng this decision?