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In 2013, Granny Co. has sales of P800,000, flexible (variable) costs of P200,000, and Capaciity-related (fixed) costs of P300,000. In 2014, Granny Co. expects annual

In 2013, Granny Co. has sales of P800,000, flexible (variable) costs of P200,000, and Capaciity-related (fixed) costs of P300,000. In 2014, Granny Co. expects annual property taxes to decrease by P15,000.

a. Calculate operating income and the breakeven point for 2013.

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