Rise & Shine Incorporated (RSI) is a Canadian public company that manufactures plastic products for other companies. Several of RSI's largest customers are pharmaceutical companies and RSI has contracts with them to manufacture plastic medicine bottles. This particular line of business accounted for 55% of RSI's total revenues for 2019. In 2020, the worldwide pandemic hit and RSI retooled part of their manufacturing line to produce plastic shields for frontline workers after signing a contract with the Province of Ontario. With the increase in virtual doctor visits and related medical outcomes, the demand for plastic medicine bottles also increased with it accounting for 58% of total revenues in 2020 and 2021. It is now early 2022 and Ross Tapper, the CEO of RSI along with Ursula Leyen, Chief production officer are meeting to discuss RSI's future direction. The pandemic appears to be stabilizing worldwide; however, there continues to be a need to plan for future variants and future pandemics. The Government of Canada has approached RSI to manufacture plastic shields to be stockpiled for future use. The contract is significant and will require RSI to create more manufacturing time for the shields. Given utilization constraints, they predict that they would have to reduce the manufacturing of the plastic medicine bottles by 10%. They are NOT SURE at this time what the upcoming production contracts will be for the plastic bottles but they do need to present information to the Board so that they can make a decision as to what to do. Government Contract Details: . Contract to produce face shields for 2022 and 2023 $500,000 fee to retool manufacturing equipment and cover overhead costs $0.10 per face shield grant for the manufacture of each face shield Cost of materials and direct labour estimated per face shield is $0.25 per shield The Government will buy each shield from RSI for $1.00. RSI is to produce a minimum of 5 million face shields each year to a maximum of 7,000,000 each year. . . Instructions: You are a cost analyst at RSI and you have been tasked with creating a briefing report. The briefing report should summarize the issue(s) facing RSI and identifying some of the key cost components that would be integral to their decision