The Neneng Corp. established its San Pedro branch in March 2016. During the first year of operations, the home

office shipped to the branch merchandise which had a cost of P120,000. Three-fourths of these merchandise was

sold by the branch for P141,000. Operating expenses of the branch amounted to P27,000.

How much net income will the branch report if merchandise is billed by the home office to the branch at 25%

above cost?

a. 800

b. 1,200

c. 1,500

d. 8,000