1. Summertime Products makes outdoor shirts. Data relating to the coming year's planned operations follows Sales (200,000 shirts) P 5,000,000 Cost of good sold 3.500 000 Gross profit P 1,500 000 Selling and administrative expenses 1, 100 000 Income P 400 000 The factory has capacity to make 240,000 shirts per year. Fixed cost included in cost of goods sold was P 1,000,000. The only variable selling, general, and administrative expenses are a 10 % sales commission and a P 2 00 per shirt licensing fee paid to the designer, A chain store manager has approached the sales manager of Summertime Products offering to buy 30.000 shirts at P18 per shirt. These shirts would be sold in areas where Summertime' shirts are not now sold. The sales manager believes that the accepting the offer would result in a loss because the average total cost of a shirt is P 23 (13,500,000+P 1,100,000)/200,000). He feels that even though sales commissions would not be ped on the order, a loss would still result