Racine Tire Co. manufactures tires for all-terrain bicycles, The tires sell for P60 and variable cost per tire is P45; monthly fixed cost is P450,000. Required: a. Calculate the firm's break-even point in sales pesos. b. If the company can increase sales volume by 15 percent above the current level, what will be the increase in net income? What will be the new net income? Prove your calculations with an income statement. 4. The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at P0.50 per unit. Fixed costs are P900,000 per year. Variable costs are P0.30 per unit. REQUIRED. Consider each case separately: a. What is the current annual operating income? b. What is the present breakeven point in revenues? Compute the new operating income for each of the following changes: 2. P0.04 per unit increase in variable costs 3. A 10% increase in fixed costs and a 10% increase in units sold 4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit, and a 40% increase in units sold Compute the new breakeven point in units for each of the following changes: 5. A 10% increase in fixed costs 6. A 10% increase in selling price and a P20,000 increase in fixed costs