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15 points SAVE ANSWER Doug Hole sells 3 types of digging shovels: Round, Flat and Spade. The business incurs annual fixed costs of $80,000. Last financial year approximately 10,000 units were sold in the ratio of 1:2:2 with sales expected to double for the current financial year. The following information has been provided. Round Flat Spade Price per shovel S 15.00 S 9.50 S 7.75 Variable costs $ 9.50 $ 6.50 S 4.50 The bending machine is used to manufacture Round and Flat shovels. The capacity of the bending machine is 150 hours per month. The round shovel requires 5 minutes of machine time per unit and the flat requires 4 minutes per unit. Required: a. Calculate the number of each shovel type that must be sold to break even. (5 marks) b. To maximise profits, what is the optimal production schedule based on the bending machine? (2 marks) c. The round and flat shovel must also pass through the handle machine which has 240 hours available per month. Round shovels require 24 minutes each and flat shovels require 12 minutes each. Taking into account the bending and handle machine constraints, what is the optimal production schedule? (5 marks) d. What are 3 problems with producing output at levels determined by the optimal production schedules