CASE #2 Tweety Fish makes small bird houses that sell for P25 each. The company's current level of production and sales is 120,000 units- In addition to #430,500 of fixed manufacturing overhead and 9159,050 of fixed administrative expenses, the following perunit cost have been determined for each bird house: Direct material 96.00 Direct labor 3.00 Variable manufacturing overhead 0.80 Variable selling expense 2.20 Total variable cost $12.00 Required: a. Prepare a variable costing income statement at the current level of production and sales. Calculate the unit CM in Peso and the CM ratio for a bird house. Determine the BEP in number of bird houses. Calculate the Peso BEP using the CM ratio. Determine Tweety Fish's M05 in units, in sales peso, and as a percentage. Compute the company's degree of operating leverage. If sales increase by 25%, by what percentage will before Thymus-Jo- tax income increase? g. Hovvr many bird houses will the company need to sell to earn #996,450 in beforetax income? If the company wants to earn 965?,800 after tax and is subject to a 20% tax rate, how many units must be sold? Hovur many bird houses would need to be sold to break even fi Tweety Fish's fixed manufacturing cost increased by P1865? [use the original data] j. The company has received an offer from a Brazilian company to buy 4,000 bird houses at P20 per unit. The per unit variable selling cost of the additional units will be 92.80 [rather than 92.20}, and $18,000 of additional fixed administrative cost will be incurred. This sale would not affect domestic sales of their costs. Based on _.=. quantitative factors alone, should Tweety Bird accept this offer