The following information are extracted from the books and records of Pi Corporation and its branch. The balances are at December 31, 20x7, the third year of the corporations existence.

	Home office books	Branch books
Sales		P300,000
Expenses		100,000
Shipments from home office		180,000
Allowance for overvaluation of branch inventory	P36,250

The branch acquires all of its merchandise from the home office. the inventories of the branch at billed prices are as follows:

January 1, 20x7	P 37,500
December 31, 20x7	42,000

What is the percentage of profit on cost that the home office uses to bill merchandise shipped to branch?

Select one:

a.

35%

b.

25%

c.

30%

d.

20%