6. Frenchies Fries, Inc. manufactures and sells packed French fries. The fries are packaged in 20-grams bags and sold to retailers for P45.00 per bag. The variable costs per bag are as follows: Potato Vegetable oil Packaging foil bag Salt Marketing and Selling P12.00 1.50 0.55 0.35 3.00 Annual fixed costs for manufacturing and administrative are P1,750,000 and P1,300,000 respectively. Compute the number of units that must be sold for the company to break even. Assuming a tax rate of 35% and variable cost per bag is decreased by 20%, how many units must be sold to earn an income after-tax profit of P1,680,000? Suppose that the company fixed costs for manufacturing increased by 12% and expects to sell 500,000 bags of French fries. What is the resulting after-tax profit if the tax rate is 30%? C. Multi-Product Analysis 7. Phones, Inc. has three (3) cellular phone products: Cell 1150, Cell 2210 and Cell 3250. The revenues and expenses attributed to each individual product type of the company during the previous fiscal year are summarized as follows: Total Sales in Units Total Peso Sales (in Php) Cell 1150 15,000 300,000,000 Total Variable Cost (in Php) 180,000,000 70,000,000 Cell 2210 5,000 150,000,000 Cell 3250 12,000 72,000,000 42,000,000 8,500,000 Total 32,000 522,000,000 312,000,000 128,500,000 Total Fixed Cost (in Php) 90,000,000 50,000,000 Compute the breakeven point in units for each product type assuming that Phones, Inc.'s sales mix will be maintained. Phones, Inc. plans to launch a promotional offer to the market, giving 5% off on the selling price of Cell 1150 and 10% discount on the selling price of both Cell 2210 and Cell 3250. Given the promotional plan of the company, how many units of each product type should be sold in order to realize a profit of Php 25,000,000? 8. Mr. Farmer ventured into cheese production. He currently produces four varieties of cheeses made from pure cow's milk and flavored with different herbs and spices. Production data are as follows: Product Smoky Cheddar Dill Garlic Hot Pepper Sweet Basil Total Selling Price Php 25.00 Php 24.00 Php 27 Variable Cost Php 6.00 Php 4.00 Php 7.00 Php 22 Php 5.00 Fixed Cost Historical 100,000 200,000 150,000 300,000 Php 420,000 750,000 Sales (in volume) What is the weighted-contribution margin? Determine the breakeven volume for each of the three products? How many units of each type of cheese should be sold to earn a profit of Php 200,000? 9. An appliance manufacturing company intends to produce three models of electric fans. These models are the Stand Fan, Wall Fan, and Ceiling Fan. The table below shows the available information on these three models. Type of Cost Selling Price/Unit Variable Cost/Unit Stand Fan P 750.00 P 300.00 Wall Fan P 500.00 P 250.00 Ceiling Fan P 1,000.00 P 500.00 How many units of each model should be sold each month to breakeven? What are the breakeven sales each month?