Ruby Limited manufactures and sells desks. Price and cost data for the company are provided below: Selling price per unit $250 Variable costs per unit Manufacturing Direct materials $82 $40 4 $60 $16 Direct labour Variable manufacturing overhead Variable selling and administrative costs Annual fixed costs Fixed manufacturing overhead Fixed selling and administrative costs Forecasted annual sales $1,440,000 $2,070,000 $17,500,000 Ruby Limited pays income taxes of 30 percent. Required: (a) What is Ruby Limited's break-even point in units? How many units would Ruby Limited have to sell in order to earn a profit of $1,820,000 after tax? (b) (c) If the company's direct labour costs increase by 10 percent, how many units will the company have to sell next year to reach its break-even point? (d) Ruby Limited manufactures chairs using a completely automated production process. Its major competitor, Emerald Industries, assembles its products manually. How will these two companies' cost structures differ? What is operating leverage factor? Which company will have a higher operating leverage factor? Explain. (e) How can a company with multiple products compute its break-even point? (5 + 3+ 4+ 6+4 = 22 marks)