A company produces and sells three products:

C

J

P

Sales

P200,000

P150,000

P125,000

Separable (product) fixed costs

60,000

35,000

40,000

Allocated fixed costs

35,000

40,000

25,000

Variable costs

95,000

75,000

50,000

The company lost its lease and must move to a smaller facility. As a result, total allocated fixed costs will be reduced by 30%. However, one of its products must be discontinued in order for the company to fit in the new facility. Because the company's objective is to maximize profits, what is its expected net profit after the appropriate product has been discontinued?

a. P20,000

b. P10,000

c. P30,000

d. P25,000

e. P15,000