N \& M Company is into furniture business specialized in dining sets. Last year, sales volume totaled P850,000. Volume for the first five months of the current year totaled $600,000, and sales were expected to be P1,600,000 for the entire year. Unfortunately, the furniture business in the region where N \& M is located, specifically, wood dining sets, is very competitive. More than 100 dining set shops are all competing for the same business. The company offers two different quality wood dining sets: Narra and Molave, with Narra being the higher quality. The average unit selling prices, unit variable costs, and direct fixed costs are as follows: Common fixed costs (fixed cost not traceable to either dining sets) are $35,000. Currently, for every three Narra dining sets sold, seven Molave dining sets are sold. Required 5. Calculate the number of Narra and Molave dining sets that are expected to be sold during the current year. Required 6. Calculate the number of Narra and Molave dining sets that must be sold to break-even. Required 7. N \& M can buy computer-controlled machines that will make production of the dining sets faster and meet the demands of the customers. If the machines are purchased, the variable costs for each type of dining set will decrease by 9 percent, but the common fixed costs will increase by p44,000. Compute the effect on operating income, and also calculate the new break-even point. Assume the machines are purchased at the beginning of the sixth month. Fixed costs for the computer are incurred uniformly throughout the year. d 8. Refer to the original data. N&M is considering adding a retail outlet. This will increase common fixed costs by 270,000 per year. As a result of adding the retail outlet, the additional publicity and emphasis on quality will allow the firm to change the sales mix to 1:1. The retail outlet is also expected to increase sales by 30 percent. Assume that the outlet is opened at the beginning of the sixth month. Calculate the effect on the company's expected profits for the current year, and calculate the new break-even point. Assume that fixed costs are incurred uniformly throughout the year