How to calculate materiality level

Hello sir

I am not able to understand how this type of materiality calculation question is solved –

You are planning the audit of Veryan Co, a new audit client. Veryan operates in the oil & gas exploration industry. It has been in existence for 30 years and has grown its revenue at an average of 12% per annum. During your planning meeting you were informed that the forecast profit before tax for this financial year is $9.5m based on revenues of $124m.
Which of the following is the LEAST appropriate materiality level to be used in the audit of Veryan?
Ans is $1.5m
is 16% of profit and 1.2% of revenue and is therefore too high based on the standard benchmark calculations. As Veryan is a new audit client it is likely that materiality will be set at the lower end of the materiality scale to reflect the increased detection risk.

I don’t get it how this is derived. I would be glad if I get a detailed explanation of this question.

Thank you in advance