Mateat Co. is considering constructing a new plant to process frozen fruit juices. One plant would be capital intensive, the other much more labor intensive. Although the final decision would hinge on the relative cost of capital versus labor in the northern areas management is curious of the behavior of the plants returns on assets during a typical business cycle (20) a. Given the following in formation, calculate the break-even point in units of production for the two plants. b.The economics department has prepared sales projections for three business scenarios: recession, normal and recovery. Sales under each scenarios are expected to be as follows: recession 300,000 units; normal,500,000 units; recovery, 800,000 units. Calculate the return on assets for the two plants under these three scenarios.( ROA= NI/TA) c.If the required rate of return is 8 percent which investment would be Plant1 Plant 2 Fixed cost $200,000. $600,000 Variable cost 1.5. 0.50 Price per unit 2.00. 2.00 investment 1000,000. 1000,000