Cebu Tires and Rubber Company has a capacity to produce 650,000 tires of variable sizes per year. At present it is operating at 62% capacity. The firms annual income is P416,000.Annual fixed costs are P192,000 and the variable costs are P0.3567 per unit of product.

a. What is the firms annual profit or loss? b.at what volume of sales does the firm break-even