Makati Company, a wholesale supply company, engages independent sales agents to market the company lines. These agents currently receive a commission of 20% of sales, but they are demanding an increase to 25% of sales made during the year ending December 31, 2020. The company had already prepared its 2020 budget before learning of the agents' demand for an increase in commission. The pro forma income statement below is based on this budget:

Makati Corporation Pro-forma Income Statement For the year ending December 31, 2020 Sales P10,000,000 Cost of goods sold 6,000,000 Gross profit 4,000,000 Selling and administrative expenses: Commissions P2,000,000 All other costs (fixed) 100,000 2,100,000 Income before income tax 1,900,000 Income tax (30%) 570,000 Profit (loss) P 1,330,000

The company is considering the possibility of employing its own salesperson. Three individuals would be required, at an estimated annual salary of P30,000 each, plus commissions of 5% of sales. In addition, a sales manager would be employed at a fixed annual salary of P160,000. All other fixed costs, as well as the variable cost percentages, would remain the same as the estimates in the 2020 pro-forma income statement. Required: a. Compute the company's estimated breakeven point in sales peso for the year ending December 31, 2020, based on the pro-forma income statement prepared by the company. b. Compute the company's estimated breakeven point in sales pesos for the year ending December 31, 2020, if the company employs its own salespersons. c. For the year ending December 31, 2020, compute in sales pesos the estimated volume required to yield the same net income as projected in the pro forma income statement, if the company continues to use the independent sales agents and agrees to their demand for a 25% sales commission.

thanks tutor