Samsung manufactures commercial and residential modems. The company sells one commercial modem per three residential modems sold. Selling prices for the commercial and residential modems are, respectively, P5,600 and P1,800, and variable selling and production costs are, respectively P3,800 and P1,000. The companys annual fixed costs are P8,400,000.

Requirement:

a. Compute the units of each modem needed to break-even and earn P1,008,000 of after-tax income at 40% income tax. Additionally compute the peso sales for each modem needed to earn 12% on sales revenue in pre-tax income, and earn 8% on sales revenue in after-tax income at a 40% tax rate.