During $2007,$ A Company sold $500,000$ boxes of cake mix under a new sales promotional program. Each box contains one coupon, which submitted with P$4\mathrm{.}00$ entitles the customer to a baking pan. InfoTech pays P$5\mathrm{.}00$ per pan and P$1\mathrm{.}50$ for handling and shipping. A estimates that $80\%$ of the coupons will be redeemed, even though only $300,000$ coupons had been processed during the year.

How much is the premium expense for the year $2007?$

$500,000$

$2,000,000$

$1,200,000$

$600,000$