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 financial and operational leverage tools, how many units does the firm require to produce to cover the above costs? (5 Marks) (b) If you use the above date, how many units will be sold if the firm desires to make a profit of $60,000? (5 Marks) 3. Harman Company manufactures skates. The following is their income statement data: Operating Units Total Variable Sold Costs ($) Fixed Costs ($) Total Cost ($) Total Revenue ($) Income or Loss ($) 20,000 40,000 20,000 60,000 80,000 30,000 60,000 20,000 80,000 120,000 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 = % change in operating income % change in units sold (c) Use a different tool now to confirm your answer to part (a) by recomputing DOL (3Marks) DOL = [Q(P-VC)] [Q(P-VC) - FC]