Graded Exercise 3 : Due Date: 25 October 2023 (Week 9) Question (20 marks) Senyuman Factory normally produces and sells 30,000 units of RG-6 each month. The selling price is RM22 per unit, variable costs are RM14 per unit, fixed manufacturing overhead costs total RM150,000 per month, and fixed selling costs total RM30,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Senyuman Factory's sales to temporarily drop to only 8,000 units per month. Senyuman Factory estimates that the strikes will last for two months, after which time sales of RG-6 should return to normal. Due to the current low level of sales, Senyuman Factory is thinking about closing its own plant during the strike, which would reduce its fixed manufacturing overhead costs by RM45,000 per month and its fixed selling costs by 10%. Start-up costs at the end of the shutdown period would total RM8,000. Because Senyuman Factory uses Lean Production methods, no inventories are on hand. Required: a. What is the financial advantage (disadvantage) if Senyuman Factory closes its own plant for two months? (4 marks) b. Should Senyuman Factory close the plant for two months? Explain. (4 marks) c. At what level of unit sales for the two-month period would Senyuman Factory be indifferent between closing the plant or keeping it open? (Hint: This is a type of breakeven analysis, except that the fixed cost portion of your break-even computation should include only those fixed costs that are relevant [i.e., avoidable] over the two-month period.) (5 marks) d. Using relevant illustrations, explain 7 steps in decision-making process. (7 marks)