ABC Company manufactures chairs. Analysis of the firm's financial records reveals the following Average Selling Price P 2,000 Variable expenses Direct Materials Direct Labor Variable Overhead Annual Fixed Cost Selling Administrative P 500 300 200 P 500,000 1,500,000 Compute for the sales volume (in units) needed to A. Break Even B. Earn P500,000 Before tax C. Earn P600,000 After tax, assuming a 20% tax rate D. Earn 20 percent on sales revenue in pre-tax income E. Earn 20 percent on sales revenue in after-tax income, assuming a 20% tax rate What will happen to breakeven point (in units) if A. Direct Labor Cost increases by P200 per unit B. Fixed Cost decreases by 20% Assuming that currently, ABC's sales is 3,000 chairs and is earning a net income of P1,000,000. What will be the effect of the following on ABC's net income? (Assume that the following are independent from one another) 1. Replace a portion of its variable labor with an automated machining process. This would result in 20% decrease in variable cost per unit, but 15% increase in fixed cost. Sales would remain the same 2. Spend P 600,000 on a new sales campaign, which would increase sales by 20% 4. 3. Increase the selling price by P250 per unit, which will cause a demand to drop by 10% Add a second manufacturing facility which would double ABC's fixed cost but would increase sales by 60% 5. Lower the price by 5%, which would increase sales by 10% 6. Adding new designs that will cost an additional P100 per unit but will increase sales by 20 percent