$2.$ The contribution margin of the Man$$s Store for the month of November $2019$ is shown below:

Man$$s Store

Contribution Margin Income Statement

November $2019$

Sales Revenue P$60,000$

Variable Expenses:

Cost of goods sold P$22,000$

Selling $13,000$

Gen. and Administrative $7,00042,000$

Contribution margin P$18,000$

Fixed Expenses:

Selling P$11,000$

Gen. and Administrative $3,00014,000$

Operating income P$4,000$

$=====$

The company sells two of ties for every belt. The ties sell for P$7,$ with a variable expense of P$4\mathrm{.}90$ per unit. The belts sell for P$6,$ with a variable unit cost of P$4\mathrm{.}20.$

Required:

$1.$ Determine the Man$$s Store monthly breakeven point in the number of ties and belts. Prove the correctness of your computation by preparing a summary contribution margin income statement at breakeven. Show only two categories of expenses: variable and fixed

$2.$ Compute for the margin of safety in pesos.

$3.$ Suppose that the company increases monthly sales by $15\%$ above the P$60,000.$ Compute for the operating income.

$4.$ Suppose the company expand the store and increases monthly fixed expenses by P$4,800.$ Use the contribution margin approach to determine the new breakeven sales in pesos.