A company has annual fixed cost of Php 600,000 and a breakeven point at 42% of capacity. The ratio of direct labor costs to direct materials cost is 4:1. At 100% capacity, the labor cost is Php...

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Extracted text: A company has annual fixed cost of Php 600,000 and a breakeven point at 42% of capacity. The ratio of direct labor costs to direct materials cost is 4:1. At 100% capacity, the labor cost is Php 960,000 which is 80% of all variable costs. If labor costs are decreased 13% with material costs remaining the same, a) Determine the new break-even point, and b) What is the ratio of direct labor to direct material at full capacity and at the new break even point?