Rainee Sales Company is the exclusive distributor for a revolutionary bookbag. The product sells P60 per unit and has CM ratio of 40%. The company's fixed expenses are P360,000 per year.

1) What is the variable expenses per unit?

2) What is the break-even point in units and in pesos?

3) What sales level in units and in pesos is required to earn an annual profit of P90,000?

4) Assume that through negotiation with the manufacturer the Rainee Sales Company is able to reduce its variable expenses by P3 per unit. What is the company's new break even point in units and in sales peso?

Extreme Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro-forma income statement for the current year is presented below:

Sales 1,500,000.00 Cost of Sales Direct Materials 250,000.00 Direct Labor 150,000.00 Variable Overhead 75,000.00 Fixed Overhead 100,000.00 575,000.00 Gross Profit 925,000.00 Selling and General Admin Expenses Variable 200,000.00 Fixed 250,000.00 450,000.00 Operating Income 475,000.00