ABC co. is expecting an increase of fixed costs by P78,750 upon moving their place of business to the downtown area. Likewise, it is anticipating that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary to breakeven is P750,000 but with the expected increase in fixed costs, the sales volume necessary to breakeven would go up to P975,000. Based on these projections, what would be the required peso sales to earn 70,000?

a. P1,150,000

b. P1,175,000

c. P425,000

d. P950,000