Karmel, InC. pays out sales commissions to its sales team in the month the company receives cash for payment. These commissions equal 5% of total (monthly) cash inflows as a result of sales. Karmel has budgeted sales of P300,000 for August, P400,000 for September, and P360,000 for October. Approximately, half of all sales are on credit, and the other half are all cash sales. Experience indicates that 50% of the budgeted credit sales will be collected in the month following the sale, 40% the month after that, and 10% of the sales will be uncollectible. Based on this information, what should be the total amount of sales commissions paid out by Karmel in the month of October?

a. P17,000

b. P8,500

c. P13,500

d. P22,000