Pamela in Bamplona makes bull-repellent scent according to a traditional Spanish recipe, which normally sells at 9 (Euros) per unit. Normal production volume is 10,000 ounces per month. Average cost is 5 per ounce, of which 2 is direct material and 1 is variable conversion cost. This product is seasonal. After July, demand for this product drops to 6,000 ounces monthly. In November, Umberto offers to buy 1,500 ounces for 6,000. Now assume that the order is received in July, peak season. If Pamela accepts the order, she will turn away regular customers who order 500 ounces. Pamela should:

Choose one.

reject the order, which loses 1,875

reject the order as it is less than her cost

accept the order if Umberto raises the price higher than 6.58/ounce

accept the order if Umberto raises the price higher than 5.58/ounce

none of the above