Question 5 (20 marks) Princeton, a retired accountant who had worked in different kinds of entities as a management accountant for over ten years. He has a frugal lifestyle and therefore has accumulated a lot of savings. Last year, he started a small retail business in a popular tourist spot located in Vancouver, Canada. Fantastic Company sells two types of souvenirs - badge and figurine. Appling the concepts previously learnt in his undergraduate study, he has collected some relevant information. The average selling price and variable cost for each type of product are as follows: Figurine Badge Selling Price $36 Selling Price $22 Variable Cost $16 Variable Cost $14 Fixed costs are $56,000. Required: a. What is the breakeven point in units for each type of products, assuming the sales mix is 1:12 (6 marks) b. What is the degree of operating leverage, assuming the sales mix is 2:1 in favor of Figurine, and the total sales quantity is 6,000 for BOTH products? (10 marks) c. Suppose a handbag manufacturing company decides to automate a production line. Explain what effects this would have on a company's cost structure. Could these changes have any possible negative impact on the company? (4 marks)