Solve the following.

Exercise 4-4: Sensitivity Analysis. RPM Company sells its only product at P32 per unit. Variable costs are P24 per unit and fixed costs are P100, 000 per month. Required: Answer the following independent questions: 1. What is the break-even point in units? Sales pesos? 2. If RPM can sell 15, 000 units in a particular month, what will be its income? 3. If RPM can sell 15, 000 units in a particular month, what is the margin of safety ratio? 4. What unit sales are required to earn P40, 000 per month? 5. What sales, in pesos, are required to earn after-30% tax profit of P28, 000 for the month? 6. Suppose RPM reduces its selling price to P29 because competitors are charging that amount. What is the new break-even point in units and pesos? 7. Suppose that the fixed costs are expected to decrease by P20, 000. What is the new break- even point in units and pesos? 8. Suppose that RPM is currently selling 10, 000 units per month. The marketing manager believes that sales would increase if advertising were increased by P5, 000. By how much would unit sales have to increase to give RPM the same income or loss that is currently earning? 9. Suppose that RPM is selling 20, 000 units per month at P32. What is the margin of safety in Pesos? 10. RPM currently pays its salespeople salaries for a total of P40, 000 per month, but no commissions. The vice president of sales is considering a plan whereby the salespeople would receive a 5% commission, but their salaries would fall to a total of P25, 000 per month. At what sales level is the company indifferent between the two compensation plans