Parker Company
Below Is an Income Statement for Parker Company $\$ 400,000$

Multiple Choice

Parker Company
Below is an income statement for Parker Company:
Sales                                                                         $\$ 400,000$
Variable costs                                                          $\underline{(125,000) }$
Contribution margin                                                  $275,000
Fixed costs                                                            $\underline{(200,000) }$
Profit before taxes                                                  $\underline{\$75,000}$

Refer to Parker Company.Assuming that the fixed costs are expected to remain at $200,000 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) $97,500
B) $195,000
C) $157,500
D) A prediction cannot be made from the information given.