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Prairie Power Corporation produces the same power generator in two Illinois plants, a new plant in Peoria and an older plant in Moline. The following

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Prairie Power Corporation produces the same power generator in two Illinois plants, a new plant in Peoria and an older plant in Moline. The following data are available for the two plants: Home Page Layout Formulas Insert Data Review View B D E 1 Peoria Moline 2 Selling price $150.00 $150.00 3 Variable manufacturing cost per unit $72.00 $88.00 4 Fixed manufacturing cost per unit 30.00 15.00 5 Variable marketing and distribution cost per unit 14.00 14.00 6 Fixed marketing and distribution cost per unit 19.00 14.50 7 Total cost per unit 135.00 131,50 8 Operating income per unit $ 15.00 $ 18.50 9 Production rate per day 400 units 320 units 10 Normal annual capacity usage 240 days 240 days 11 Maximum annual capacity 300 days 300 days All fixed costs per unit are calculated based on a normal 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 $3.00 per unit in Peoria and $8.00 per unit in Moline. Prairie Power Corporation is expected to produce and sell 192,000 power generators during the coming year. Wanting to take advantage of the higher operating income per unit at Moline, the company's production manager has decided to manufacture 96,000 units at each plant, resulting in a plan in which Moline operates at maximum capacity (320 units per day * 300 days) and Peoria operates at its normal volume (400 units per day 240 days). Required: (Download and use the "BA 660 SS Project starter file.xlsx" to prepare solutions to these requirements. Prepare each requirement that follows on a separate tab see the spreadsheet provided.) 1. Calculate the breakeven point in units for the Peoria plant and for the Moline plant. 2. Calculate the operating income that would result from the production manager's plan to produce 96,000 units at each plant. 3. Determine how the production of 192,000 units should be allocated between the Peoria and Moline plants to maximize operating income for Prairie Power Corporation. Create formulas to solve this problem using the "Input Form" positioned near the top of the "Requirement 3" tab. This feature will allow decision makers to try other combinations and satisfy themselves that your recommendation is the best to optimize operating income. Use the items presented on the Data' tab as a model for formatting and explaining the details

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