Exercise 4.33 525 kg The income statement information for Crane follows: Premium Regular Royal Total Sales units 175 kg 175 kg 175 kg Sales $ 3,850 $2,800 $3,150 $9,800 Variable costs 2,450 1,750 1,890 6,090 Contribution margin 1,400 1,050 1,260 3,710 Production line fixed costs 1.120 1,269 910 3,299 Corporate costs (allocated)* 158 140 184 482 Total fixed costs 1,278 1,409 1,094 3,781 Operating income (loss) $ 122 $ (359) $ 166 $ (71) * If the company drops the product, these costs are no longer incurred. ** None of these corporate costs are expected to change if a product line is dropped. Using the general decision rule, which product should the corporation emphasize? Emphasis order LINK TO TEXT LINK TO TEXT LINK TO TEXT Using the general decision rule, should the corporation drop Regular (assuming no changes in demand for other products)? Show how operating income would change if Regular were dropped. (Show a loss preceded by a minus sign, e.g. -200 or (200).) Regular be dropped Operating income/(loss) LINK TO TEXT LINK TO TEXT LINK TO TEXT At what point (in kg) would the managers be indifferent to dropping Regular? In other words, what is the breakeven point for Regular? (Round answer to 0 decimal places, e.g. 125.) Breakeven point kg