Sunny and Son is a local manufacturer of solar panels for domestic use with a constant annual demand of 5,000 units. The company produces the solar panels in- house and stores them in a specialized warehouse with a capacity of 500 units, leased for $6,000 per year. An additional smaller warehouse with a capacity of 200 units can be leased for $3,000 per year if needed. The company must choose between two production processes for its solar panels. Process 1 is a basic manufacturing system that requires renting machines for $15,000 per year, plus a calibration and cleaning cost of $1,000 for each round of production. This process can produce solar panels at a rate of 8,000 units per year, with a unit cost of $160. Process 2 is a more advanced manufacturing system that requires renting more efficient machines for $45,000 per year, plus a calibration and cleaning cost of $1,400 for each round of production. This process can produce solar panels at a rate of 10,000 units per year, with a unit cost of $150. You can assume that there are no additional direct storage costs for holding solar panels in stock (other than the warehouse rental costs). Also assume that Sunny and Son have the option to obtain a return of 10% per annum risk-free on its cash surplus through investment in short term government bonds. The CEO of Sunny and Son has requested your services to research and assess the different production options available to the company. Your task is to create a concise report that outlines your assumptions, models used, insights, and recommendations. Your analysis should focus on a monetary comparison of the suggested policies. A brief discussion should be provided at the end of the report to summarize your ndings