Power, Inc., produces the same power generator in two Gulf plants, a new plant in Dubai and an

older plant in Damam. The following data are available for the two plants.

All fixed costs per unit are calculated based on a nomal capacity usage consisting of $240$

working days. When the number of working days exceeds $240,$ overtime charges raise the

variable manufacturing costs of additional units by $$5\mathrm{.}00$ per unit in Dubai and $$10\mathrm{.}00$ per unit in

Damam.

Power, Inc., is expected to produce and sell $240,000$ power genexators during the coming year.

Wanting to take advantage of the higher operating income per unit at Damam, the company's

produption manager has decided to manufacture $120,000$ units at each plant, resulting in a plan

in which Damam operates at maximum capacity $(400$ units per day $300$ days$)$ and Dubai

operates at its nomal volume $(500$ mits per day $240$ days$).$

Required:

Calculate the breakeven point in units for the Dubai plant and for the Damam plant.

Calculate the operating income that would result from the production manager's plan to

produce $120,000$ units at each plant.

Determine how the production of $240,000$ units should be allocated between Dubai and

Damam plants to maximize operating income for Power, Inc. Show your calculations.