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2. Alpha Inc, sells its products for $9 per unit. The firm pays fixed cost of $240,000; and variable Quiz Navigation cost of $3 per
2. Alpha Inc, sells its products for $9 per unit. The firm pays fixed cost of $240,000; and variable Quiz Navigation 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: Finish attempt ... a).A business that generates sales with a high gross margin and low variable costs has high operating leverage. Use the financlal approach to find the unit varlable cost and unit selling price (4Marks) (b)Use the percentage change divide by percentage change in units sold to find the RQLapproach (3Marks) DOL=%changeinunitssold%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 WITH CORRECT NUMBERS GIVEN ABOVE EXAMPLE 2A,2B,3A,3B,3C.If number is not given you will not get marks)
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