1. ABC Co. sells lawn ornaments for P15 each. ABC's contribution margin ratio is 40%. Fixed costs are P32,000. Should fixed costs increase by 30%, how many additional units will ABC have to produce and sell in order to generate the same net profit as under the current conditions?

? 1,600

? 5,333

? 6,933

? 1,067

? None of the above

2. The Helium Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available:

Human Resources Janitorial Sales #1 Sales #2 Sales #3 Budgeted cost P45,000 P30,000 Space in square feet 4,000 1,000 20,000 30,000 50,000 Number of employees 5 10 15 45 30 Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is