Mindoro Corporation had sales of P 120,000 for the month of May. It has a margin of safety ratio of 25%, and after tax return on sales of 6%. The company assumes that Sales is constant every month. Required: 1. If the tax rate is 40%, how much is the annual xed costs? 2. What is the company's contribution margin ratio? Problem 13: Margin of Safety A company has the following limited data for the current year: Total Variable Cost at BEP P 30,000 Margin of Safety 37.5% Contribution Margin Ratio 40% Required: 1. How much is the Company's current year total sales? 2. How much is the Company's current year total variable cost? 3. How much is the current year's net income? Problem 14: Degree of Operating Leverage At the current sales volume of P 400,000, Davao Corporation return on sales is 10%. It is expected that in the coming year, a P 600,000 sales volume will be attained by the company and will have a return on sales of 20%. Required: 1. What was the Davao Corporation's current degree of operating leverage? 2. What was the company's fixed cost? 3. What is the break-even point in peso sales