Read and analyze the problems carefully, provide the given, required and present complete solutions systematically in each item.

A. CVP Analysis. The following data are taken from the records of Lucy Corporation: Sales, 100,000 units = P3,500,000 Variable expenses = 12,000,000 Fixed expenses = P1,350,000 Required: 1. Compute for the breakeven point un units and pesos. 2. The breakeven point in units and in pesos assuming a. Sales volume increased by 10,000 units b. The variable cost increases by 20% c. Fixed cost increases by 15% d. Selling price per unit decreases by 10% 3. Prepare Contribution Margin Income Statement under each of the conditions in #2. 4. Compute the margin of safety under each condition in #2. B. Budgeted Income Statement, Purchases Budget, Cash Budget, Budgeted Balance Sheet. The following information is available for SM Stores: Budgeted sales for January, 2019 = P200,000 Budgeted sales for February, 2019 - 240,000 Cost data: Purchase price of the product = 60% of selling price Commission to salespeople = 10% of sales Depreciation = P2,000 per month Other operating expense = 142,000 per month, including depreciation Balance Sheet at December 31, 2018 had the following accounts and their balances: Cash - P20,000, Account receivable - P110,000, Inventory = P150,000, Building and equipment, net = P200,000, Accounts payable for merchandise P80,000, Capital stock' = P300,000, Retained earnings = P100,000 Additional data: a. SM maintains inventory of 150% of the coming month's sales requirements. b. Sales are collected 40% in the month of sale, 60% in the following month. c. Purchases are paid 30% in the month of purchase, 70% of the following month. d. All other expenses requiring cash are paid in the month incurred. e. The Board of Directors plans to declare a P3,000 dividend on January 10, payable on January 25. Required: Prepare the following: 1. Budgeted Income Statement for January 2. Purchases Budget for January 3. Cash Budget for January 4. Budgeted Balance Sheet as of January 31,2019 C. Standard Costing and Variance Analysis. A4 Labs, Inc. makes a single product which has the following standards: Direct materials - 2.5 ounces at P20 per ounce Direct labor = 1.4 hours at 112.50 per hour Variable manufacturing overhead at ? (show solution for this) Variable manufacturing overhead is assigned on the basis of direct labor hours. The following data are available for October: a. 3,750 units of compound were produced during the month. b. There was no beginning direct materials inventory. C. The ending direct materials inventory was 2,000 ounces. d. Direct materials purchased - 12,000 ounces P225,000 e. Direct labor hours worked = 5,600 hours at a cost of P67,200. f. Variable manufacturing overhead costs incurred amounted to P18,200 g. Variable manufacturing overhead applied to products - P18,375. Required: Compute for the following and indicate whether the variance is favorable or unfavorable. 1. Direct materials price variance 2. Direct materials quantity variance 3. Direct labor efficiency variance 4. Variable overhead spending variance 5. Variable overhead efficiency variance