Jeff works for Standard Products, a manufacturer of consumer products. Jeff's department makes 3 products, called Product A, Product B, and Product C. The results of the year ended Dec 31,2021 , are shown below: Note 1: Fixed costs of Product A include $170,000 traceable to the product. Similarly for Products B and C traceable costs are $210,000 and $200,000. The anticipated demand in 2022 for the products for the month of January is 6,000 A, 7,000 B and 4,000 C. There is ample factory space available to make double this amount and labour is plentiful. However, from time to time there as shortages of raw material XXX which is used to make products A and B. Product A needs 7KG of XXX per unit and product B needs 5KG of XXX per unit. In 2021 a new bonus plan was put in place which will reward Jeff based on his operating income. Jeff needs to determine the appropriate amount of product to manufacture and sell to maximize his Operating Income which will also maximize his bonus. It is now the first week of January 2022 and there is sufficient time to significantly change the production schedule for the month as materials can be sourced within a day and labour is truly variable on extremely short notice. Given the losses from Product C, Jeff is giving serious thought to exercising his liscretion to stop producing Product C as it generated a loss in 2021 . He wants to etermine its breakeven point or see if he can increase sales volume to eliminate the sss. However, if he drops Product C, he believes sales of Product A will fall by 10%. significantly change the production schedule for the month as materials can be sourced within a day and labour is truly variable on extremely short notice. Given the losses from Product C, Jeff is giving serious thought to exercising his discretion to stop producing Product C as it generated a loss in 2021 . He wants to determine its breakeven point or see if he can increase sales volume to eliminate the loss. However, if he drops Product C, he believes sales of Product A will fall by 10%. Jeff just learnt that a short term supply issue with product XXX has occurred, and he can secure up to 70,000KG of XXX provided he places the order for the month within the next 2 days. Required: Using the case method, define the root problem facing Jeff