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Sales mix, multiple product breakeven, business risk, quality of information Keener producestwo products: regular boomerangs and premium boomerangs. Last month 1,200 units of regular and 2,400 units of premium were produced and sold. Average prices and costs per unit for the month are displayed here.REGULAR PREMIUMSELLING PRICE $22.15 $45.30VARIABLE COSTS $4.31 $6.91PRODUCT LINE FIXED COST $8.17 $24.92CORPORATE FIXED COST $5.62 $5.62OPERATING PROFIT $4.05 $7.85A. Assuming the sales mix remains constant, how many units of premium will be sold each time a unit of regular is sold?B. What are the total fixed product line costs for each product?C. What are the total corporate fixed costs?D. What is the overall corporate breakeven in total revenue and for each product, assuming thesales mix is the same as last month’s?E.What is the breakeven in revenues for regular boomerangs, ignoring corporate fixed costs?F. Why is the breakeven for regular boomerangs different when we calculate the individual product breakeven versus the combined product breakeven?
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