Sales mix, multiple product breakeven, business risk, quality of information Keener produces two 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 PREMIUM

SELLING PRICE $22.15 $45.30

VARIABLE COSTS $4.31 $6.91

PRODUCT LINE FIXED COST $8.17 $24.92

CORPORATE FIXED COST $5.62 $5.62

OPERATING PROFIT $4.05 $7.85

A. 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 months?

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?