215 PROFIT PLANNING AND COST-VOLUME-PA each. The market is expected to have a maximum capacity of 50,000 units. Frances is contemplating of leasing a plant to increase its capacity. The following data relate to the existing plant and the plant that may be leased: Plant-for-Lease Own Plant P20 Variable production cost per unit P24 P50,000 P400,000 Fixed costs Required: 1. What is the company's breakeven point in units? 2. How many units should the company sell to have a profit of P300,000? 3. How many units should the company sell to have a profit of 20% of the total fixed costs and the sales manager receives a P2 bonus for each unit sold beyond the breakeven point? 4. The sales in units to have a profit of P350,000, a tax rate of 30% while the lessor demands a 2% share on gross receipts beyond the breakeven point and reducing rental expense by 5%. Operating leverage 22. Operating leverage. Locker Company manufactures and sells electronic door lockers for P600 each. Variable costs are P420 per unit, and fixed costs total P4,500,000 per year. The company currently sells 40,000 units a year. Required: 1. Compute the degree of operating leverage at the present level of sales. 2. If 48,000 units are sold next year, what is the: a. expected increase in profit. b. percentage change in profit. 3. What is the company's margin of safety rate? 23. Durian Corporation has the following sales and costs structure: Unit sales price, P500 Unit variable costs, P300 Total fixed costs, P8 million Sales volume, 75,000 units Required: 1. Based on the original data, determine the CMR, BEP in pesos, operating profit. MSR, and the DOL. 2. Considering the following options to change the variables of profit, determine the new CMR, BEP in pesos, operating profit, MSR, and DOL. a.. Unit sales price decreases by 15%. b. Unit variable costs decrease by 10%. c. Total fixed costs and expenses decrease by P800,000. d. Quantity sold decreases by 10,000