1. What is the expected level of profit? 2. Should the company accept a special order for 1,000 units at a selling price of 1,000 if variable marketing expenses associated with the special order are 100 per unit? What will be the incremental profit if the order is accepted? 3. Suppose that the company received a special order for 3,000 units at a selling price of 450, with no variable marketing expenses. What would be the impact on profit? 4. Assume that if the special order were accepted, all the regular customers would be aware of the price paid for the special order. Would that influence your decision? Why?

Urban Company has the following cost structure for the upcoming year: 2,50,00,000 Sales (20,000 units x * 1,250) Manufacturing Cost Variable (per unit) Fixed Marketing and Administrative Cost Variable (per unit) Fixed 500 90,00,000 250 10,00,000