7.

Assuming that the fixed costs are expected to remain at P200,000 for the coming year and
the sales price per unit and variable costs per unit are also expected to remain constant, how
much profit before taxes will be produced if the company anticipates sales for the coming year
rising to 130 percent of the current year’s level? a. P97,500 b. P195,000 c. P157,500d.A
prediction cannot be made from the information given