Easy-peasy Co. has an offer for a special order of 100,000 units at a unit price of P6. The present production of 425,000 units is 85% of capacity. Fixed factory overhead is P1,250,000 at 100% capacity. The following are gathered from operations: Materials, P1.80; Direct labor, P1.40; Variable overhead per unit, P0.50; Variable marketing expense, P0.50; Fixed general and administrative expenses, P800,000. It is expected that the company will incur an additional lease cost for additional equipment required for the special order, P10,000. The accountant estimated that the order will result as follows: Revenue Differential cost of goods sold Direct materials Direct labor Variable FOH Fixed FOH Loss 600,000.00 180,000.00 140,000.00 50,000.00 250,000.00 620,000.00 (20,000.00) 50,000.00 Less: Variable marketing expenses Loss on this order (70,000.00)