Allan Co.'s budgeted sales and budgeted cost of sales for the coming year are P126 million and P72 million, respectively. Short-term interest rates are expected to average 10%. If Napier can increase inventory turnover from its current level of nine times per year to a level of 12 times per year, its incremental income in the coming year are expected to be (assume that average inventory is remained constant over periods, as well as the gross profit rate).

a. 40,500,000

b. 23,625,000

c. 10,125,000

d. 13,500,000