Required: (1) Compute the break-even point in unit

BPE = P 500 + 1,000 + 1,000

P 50
= 50 units
(2) If sales increase by 25%, how much will be the new operating
income?
Current net income P 2,500
Add: Incremental contribution
Margin 1,250
Operating income 3,750
(3) Compute the new break-even point in pesos if fixed factory
overhead will increase by P 1,700.
BPE = P 2,500 + 1,700
50%
 = P 8,400