1. Amado Co. manufactures and sells Product A. During the previous month, 77,500 units of Product A were sold. Total fixed costs amounted to P322,400. Its margin of safety was 15,500 units. What is the operating income of Product A if sales increases by 30%. Tax rate is 40%

2. Bluejeans Company has an after-tax profit of P140,000. Bluejeans has a return on sales of 20% and the tax rate is 30%. The total fixed costs of Bluejeans amounts to P100,000, what is the contribution margin ratio if the sales volume increases to 150%? (round of your answers to four decimal places, do not use percentage. Wrong: 27.28%, Right 0.2728)

3. SadBoi, Inc. produces high quality water-proof tissue papers. Mr. Ramos, Sadboi's Managerial Accountant, has developed an annual formula using observations from the production of 10,000 to 25,000 units to estimate its production costs; Y = P960,000 + P93(x). He sells each roll for P170. Commissions paid to sales agents are 10% of sales. Sadboi's monthly fixed costs are as follows:

Overhead costs - P80,000

Selling and administrative expenses - P20,000.

- How much is the break-even point in sales?

- Assuming the Company is currently producing 23,000, how much is the percentage increase in profit if units sold increases by 40% for the following year?

Brief solution. Thank you