ames Company has a current production level of 25,000 units per month. Unit costs at this level are:

Direct materials $0.60

Direct labour 0.28

Variable overhead 0.32

Fixed overhead 0.20

Marketing - fixed 0.80

Marketing/distribution - variable 0.40

Current monthly sales are 23,000 units. Arya Enterprise has contacted James Company about purchasing 1,500 units at $2.50 each. Current sales would not be affected by the one-time-only special order, and variable marketing/distribution costs would not be incurred on the special order. What is James Company's change in operating profits if the special order is accepted?

	a.	Decrease in operating profits of $150.
	b.	Increase in operating profits of $1,950.
	c.	Decrease in operating profits of $1,500.
	d.	Increase in operating profits of $3,750.
	e.	None of the answers.