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Power Motor Inc. (PMI) produces the same power generators in two plants, a newly renovated, automated plant in Pembroke, and an older, less automated plant in Morrisburg. The following data are available for the two plants: $150.00 $150.00 Selling price Variable manufacturing cost per unit $72.00 Fixed manufacturing cost per unit $30.00 Variable marketing and distribution cost/unit $14.00 Fixed marketing and distribution cost/unit $19.00 $88.00 $15.00 $14.00 $14.50 Total cost per unit $135.00 $131.50 Operating income per unit $ 15.00 $18.50 Production rate per day Normal annual capacity usage Maximum annual capacity 400 units 240 days 300 days 320 units 240 days 300 days All unit fixed costs are calculated based on a normal year of 240 working days. When the number of working days exceeds 240, variable manufacturing costs increase by $3.00 per unit in Pembroke and $8.00 per unit in Morrisburg. PMI is expected to produce and sell 192,000 generators during the coming year. Wanting to maximize the higher unit profit at Morrisburg, PMI's production manager decided to manufacture 96,000 units at each plant. This production plan results in Morrisburg operating at capacity (320 units per day 300 days) and Pembroke operating at its normal volume (400 units per day 240 days). Required: 1. Determine the breakeven point for the Pembroke and Morrisburg plants in units and in dollars. 2. Calculate the operating income that would result from the division production manager's plan to produce 96,000 units at each plant. 3. Determine how the production of the 192,000 units should be allocated between Pembroke and Morrisburg to maximize operating income for PMI. Show your calculations and provide a proper management explanation to support the decision. 4. Please provide a proper business/qualitative explanation for both point 2 and 3