Problem 8: Target Profit One of Zamboanga Corp.'s only products has the following information: Selling Price P 15 Variable Cost per Unit 10 Total Fixed Cost P 25,000 Tax Rate 40% The following questions are independent of each other: 1. If the company would like to have an after tax net income of P 6,000 while only selling 30,000 units, how much should be its selling price? 2. If the companyr will reduce the current selling price by 20% and reduce per unit variable cost by the same percentage while increasing Fixed cost by P 3,000, what would be the company's after tax net income oss) if it will able to sell 5,000 units? 3. If the company's fixed cost would be increased by 20% while reducing per unit variable cost by P 3.00, what would be the new breakeven point (in units)? 4. If the company's total current sale is at 12,000 units, what is the company's operating leverage?I {Use before tax net income) Problem 9: Target Profit Cebu Corporation plans to earn P 140,000 after income taxes in 2014. The tax rate is 30% of net income before income taxes. The fixed costs for the year are estimated at P 350,000. The contribution margin is estimated at 20% of sales revenue. Required: 1. Compute the sales revenue required to earn a net income after taxes of P 140,000. 2. If the contribution margin can be increased to 25%, how much sales revenue will be required to earn a net income after income taxes of P 140,000? Problem 10: Target Profit Cavite Corporation has budgeted for 2014 fixed costs of P 50,000, sales of P 250,000 and a profit of P80,000. Required: 1. What was the company's expected contribution margin ratio? 2. What is the required sale if the company wants to earn a return on sales of 12%? 3. If the company is subject to a 40% tax return and would like to earn an after-tax return on sale of 9%, what should be its total sales