Question: 2. Alpha Inc, sells its products for $9 per unit. The firm pays fixed cost of $240,000; and variable cost of $3 per unit. (a)

2. Alpha Inc, sells its products for $9 per unit. The firm pays fixed cost of $240,000; and variable cost of $3 per unit. (a) Using the finnneial and operational leverage took, how many units does the finm require to produce to cover the above costs? (5 Marks) (b) If you use the above date, how many units will be soid if the firm desires to make a profit of $60,000 ? (5 Marks) 3. Harman Company manufactures skates. The following is their income statement data: a). A business that generates sales with a high gross margin and low variable costs has high operating leverage. Use the financial approach to find the unit variable cost and unit selling price (4Marks) (b) Use the percentage change divide by percentage change in units sold to find the DOLapproach (3Marks) DOL=%changeinwitssold%changeinoperatingincome (c) Use a different tool now to confirm your answer to part (a) by recomputing DOL. (3Marks) DOL=[Q(PVC)FC][Q(PVC)] PLEASE WRITE THE ANSWERS WIT CORRECT NUMBERS GIVEN ABOVE EXAMPLE 2A, 2B,3A,3B,3C. If number is not given you will not get marks)

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