Genia Enterprises, Inc. has the capacity to produce 12,000 units per year. Expected operations for the year are

Sales (10,000 units @ $20)	$200,000
Manufacturing costs:
Variable	$8 per unit
Fixed	$40,000
Marketing and administrative costs:
Variable	$3 per unit
Fixed	$20,000

REQUIRED:

a.	What is the expected level of operating profits?
b.	Should the company accept a special order for 1,000 units at a selling price of $15 if variable marketing expenses associated with this special order would be $2 per unit? Calculate the incremental profits if the order is accepted.
c.	Suppose the company received a special order for 3,000 units at a selling price of $15 with no variable marketing expenses. Calculate the impact on operating profits.