Thomass Magnate produces backpacks in its fully automated facility. Its lightweight nylon backpack used to be a sought-after product among university students. The company barely broke even last year after combating declining sales. Last year, the company produced and sold 50,000 backpacks at an average price of RM90 per unit. Variable manufacturing costs were RM30 per unit, and variable marketing costs were RM5 per unit sold. For the current year, as optimistic as they could be, the company developed its business plan with the assumption it would gain an annual profit of RMS50,000 with the established price and eosts. "Only 10,000 backpacks sold in the first quarter? We nced to think of a nen strategon a very sood one!" said the president after reviewing the first quarter financial statements. It was clear that the current year's target profit would not be reached unless some actions were taken. A management committee has been assigned to analyse the situation and develop several options. The following mutually exclusive options were presented to the president: - Option 1: Reduce the sales price to RM75. The sales department forecasts that with the significantly reduced sales price, 55,000 backpacks can be sold during the remainder of the year. Total fixed and variable unit costs will stay as budgeted. - Option 2: Lower variable costs per unit by RM8 through the use of less expensive raw materials and slightly modified manufacturing techniques. The sales price would also be reduced by RM10, and sales of 51,000 backpacks for the remainder of the year are forecast. - Option 3: Cut fixed costs by RM280,000 and lower the sales price by 5 per cent. Variable costs per unit will be unchanged. Sales of 49,000 backpacks are expected for the remainder of the year. the company is able to produce a maximum capacity of 80,000 backpacks annually. The sales department assures management that it can sell between 26,000 and 30,000 units of this model for the year. Suppose management decided to produce and sell both products. If the two models are sold in equal proportions, determine how many units of each model would the company have to sell in order to break even