"Wow" replied Del Mundo. "And I noticed that between the $20\%$ that we pay JCP and the $13,445,000,$ we can either form more groups of electrical personnel or generate enough savings for us to expand to the construction of high$-$rise buildings."

"It's even better than that," replied Regina. $"$We can have the budget to hone the skills of our engineers by sponsoring their continuing professional development. Eventually, we will see improvements in our projects."

"Finalize your report we'll present these to the executive committee tomorrow," said Del Mundo. "With the approval of the committee, we can move on the matter immediately."

Required $14.$ Compute DMA's breakeven point in total peso revenue under three $(3)$ independent assumptions:

a$.$ JCP$\text{'}$s fee remains unchanged at $20\%.$

b$.$ JCP$\text{'}$s fee is increased to $25\%.$

c$.$ The company employs its force of electrical personnel.

Required $15.$ Assume the company decides to pay the $25\%$ subcontractor's fee. Calculate the total amount of revenue required to generate the same net income as contained in the projected income statement for next year.

Required $16.$ Compute the target total revenue to achieve the current NOI of $917,000,000$ if DMA:

a$.$ Pays JCP$\text{'}$s fee at $25\%.$

b$.$ The company employs its force of electrical personnel.

Required $17.$ Use income before taxes. Compute the degree of operating leverage $($DOL$)$ the company would expect to have at the end of next year under $3$ independent assumptions:

a$.$ Subcontractor's fee remains at $20\%.$

b$.$ Subcontractor's fee is increased to $25\%.$

c$.$ Company employs its force of electrical personnel.

Required $18.$ Analyze information gathered from Requirements $14$ to $17$ on considerations $($a$)$ JCP$\text{'}$s fee is at $20\%,$

$($b$)$ JCP$\text{'}$s fee is at $25\%,$ and $($c$)$ the company employs its force of electrical personnel. Prepare a comparative table to summarize the results of the quantitative considerations on:

Break$-$even Point $($BEP$)$

Required Revenue

Degree of Operating Leverage $($DOL$)$

Projected NOI

Make a recommendation and discuss the merits of choosing the alternatives for the company:

Alternative $1$: The company should continue to pay JCP a $20\%$ subcontractor's fee.

Alternative $2$: The company should continue to pay JCP a $25\%$ subcontractor's fee.

Alternative $3$: The company should employ its force of electrical personnel.