hloe Company has two divisions, ABC and XYZ. ABC produces a unit that XYZ could use in its production. XYZ currently is purchasing 50,000 units from an outside supplier for P25. ABC is operating at less than full capacity and has variable costs of P14.50 per unit. The cost to manufacture the unit is P20. ABC currently sells 450,000 units at a selling price of P27. If an internal transfer is made, variable shipping and administrative costs of P1 per unit could be avoided. How much profit will ABC receive from the transfer if a transfer price of P20 is agreed upon?

Group of answer choices (just show the solution)

P350,000

P325,000

P100,000

Answer not given