Brief solution and explanation pls.

2. Using the same information in Arturito Company, what is the minimum acceptable price per pair in order to accept the offer?

A. 587

B. 598

C. 525

D. 610

Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The company currently operates at 45,000 pairs. The maximum capacity of Arturito is 50,000 pairs. If arturito will accept the order, it will need to stop some of their operations. The shoes normally sell for P600. Costs pertaining to the production are as follows: Manufacturing costs are as follows: Direct material per unit P200 Direct labor per unit 180 13/10 27/2021 Variable overhead per unit 50 Fixed overhead per unit 30 Period costs are as follows Variable selling costs P20 per unit Fixed administrative costs P450,000 If the company will accept the order: It will not incur any selling costs. Variable overhead of P12 per unit will not be incurred. Exportation costs of P150,000 will be incurred. Assuming you are the managerial accountant of Arturito Company, what will you suggest? Reject the special order because there is an incremental loss of P80,000 Reject the special order because there is an incremental loss of P200,000 Reject the special order because there is an incremental loss of P830,000 Accept the special order because there is an incremental benefit of P70,000