Quench Beverage Company, Inc. is considering alternative proposals for expansion into the CALABARZON.

Alternative 1: Construct a single plant in Laguna, with a monthly production capacity of 300,000 cases, a monthly fixed cost of P2,625,000, and a variable cost of P32.5 per case.

Alternative 2: Construct three plants, one each in Antipolo, Rizal; Tanauan, Batangas; and Gen. Trias, Cavite, with capacities of 120,000, 100,000, and 80,000, respectively, and monthly fixed costs of P1,200,000, P1,100,000, and P950,000 each. Variable costs would be only P30 per case because of lower distribution costs. To achieve these cost savings, sales from each smaller plant would be limited to demand within its home province. The total estimated monthly sales volume of 200,000 cases in these three provinces is distributed as follows: 80,000 cases in Rizal, 70,000 cases in Batangas, and 50,000 cases in Cavite.

A. Assuming a wholesale price of P50 per case, calculate the breakeven output quantities for each alternative.

B. At a wholesale price of P50 per case in all provinces, and assuming Quench with the highest profit per month?

C. If sales increase to production capacities, which alternative would prove to be more profitable