Sapphire Limited manufactures and sells GPS device. Price and cost data for the company are provided below Selling price per unit Variable costs per unit $250 Manufacturing costs Direct material Direct labour Variable manufacturing overhead 82 40 60 16 Variable selling and administrative costs Annual fixed costs $2 880 000 $4 140 000 $35 000 000 Fixed manufacturing overhead Fixed selling and administrative costs Forecasted annual sales Required: (a) What is Sapphire Limited's break-even point in units? (3 marks) (b) How many would Sapphire Limited have to sell in order to eam a before tax profit of $5 200 000? (2 marks) (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? (2 marks) (d) What is operating leverage? How can an understanding of this concept be useful to managers? (3 marks) (18.18)