Limagtu Company produces speakers for home stereo units. The speakers are sold to retail stores for P30. Manufacturing and other costs are as follows: Variable costs per unit: Fixed costs per month: Direct materials P 9.00 Factory overhead P120,000 Direct labor 4.50 Selling and admin. 60,000 Factory overhead 3.00 Total P180,000 Distribution 1.50 Total P18.00 The variable distribution costs are for transportation to the retail stores. The current production and sales volume is 20,000 per year. Capacity is 25,000 units per year. Required: Answer the following the following independent cases. 1. A Quezon manufacturing firm has offered a one-year contract to supply speaker parts at a cost of P6.00 per unit. If Limagtu Company accepts the offer, it will be able to reduce variable costs by 30 percent and rent unused space to an outside firm for P18,000 per year. All other information remains the same as the original data. What is the effect on profits if Limagtu Company buys from the Quezon firm? 2. A Quezon manufacturing firm has offered a one-year contract to supply speaker parts at a cost of P16.00 per unit. If Limagtu Company accepts the offer, it will be able to rent unused space to an outside firm for P18,000 per year. All other information remains the same as the original data. What is the effect on profits if Limagtu Company buys from the Quezon firm? 3. The speakers are currently unpackaged. Packaging them individually would increase costs by P1.20 per unit. However, the units could then be sold for P33.00. All other information remains the same as the original data. What is the effect on profits if Limagtu Company packages the speakers