Question: Question 4 (22 points) A location decision The students identify two possible locations to manufacture the bikes. After thorough research, you produce the following financial

Question 4 (22 points) A location decision The students identify two possible locations to manufacture the bikes. After thorough research, you produce the following financial information on each site: Location Fixed costs ($) Direct costs per unit ($) Forecast selling price per unit ($) 1500 1500 Maximum capacity due to space limits (units) 120 150 Site A Site B 60000 75000 750 900 a) Using the data in the table construct fully labelled break-even charts for site A and site B. Indicate the break-even output and the margin of safety at full production on each chart (8 points) b) Using the charts you created, describe the following for site A and site B: The break-even level of output (3 points) The margin of safety at maximum output (3 points) The profit if the maximum capacity is sold (3 points) c) On the basis of the observations you made, explain which location the manufacturer should choose (5 points)

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