Question 3: (16 marks). Giro Inc. manufactures and sell bicycle safety helmets. Price and cost data for the product follows: Selling price per unit $25.00 Variable costs per unit: Direct Materials 10.50 Direct Labour 5.00 Manufacturing overhead 3.00 Selling expenses 1.30 Total variable cost per unit $19.80 Annual total fixed costs: Manufacturing overhead $192,000 Selling and administrative 276,000 Total fixed costs $468,000 Forecasted annual sales volume in units 120,000 Required: a. Calculate Giro's margin of safety in sales dollars. b. How many units does the company have to sell in order to generate a net income figure of $600,000? The company has a 35% tax rate. c. Giro is looking at the possibility of renting a machine at an annual cost of $90,000. This machine would allow Giro to reduce its direct labour costs by 15% and its variable manufacturing overhead costs by 5%. Advise Giro as to what the company should do