Problem no.1 Jetson Company sold 20,000 units of its only product and incurred a P50,000 loss (ignoring income taxes) for the current year as shown below. During a planning session for year 2018 activities, the production manager notes that variable costs can be reduce 50% by installing a machine that automates special operations. To obtain this savings, the company must increase its annual fixed cost by P150,000. The maximum output capacity is 40,000 units per year. JETSON COMPANY Contribution Margin Income Statement for year ended Dec. 31, 2017 Sales P 750,000.00 Variable cost 600,000.00 Contribution Margin 150,000.00 Fixed Cost 200,000.00 Net Loss 50,000.00 P Required: 1. Compute for break even point in pesos for year 2017, 2. Compute the predicted break even point in pesos for year 2018, assuming that the machine is installed and there is no change in the unit sales price. 3. Prepare a forecasted Contribution margin Income Statement for year 2018 that shows the expected results with the machine installed. Assume that the unit sales price and the number of units sold will not change and no income taxes will be due. 4. Compute the sales level required in pesos and units to eam P140,000 of after tax income in 2018 with the machine installed and no change in unit sales price. Income tax rate is 30 percent. 5. Prepare a forecasted Contribution Margin Income Statement that shows the results at a sales level computed in Requirement No. 4. Assume that income tax rate is 30 percent