Green Garden Tools produces a basic and a deluxe model of garden trowels. The basic model is sold at $15 each, and the deluxe model is sold at $28 each. The variable cost of making the basic model is $9 each. It costs an extra $8 to make the deluxe model. It takes 8 labor hours to make 100 basic trowels and 12 labor hours to make 100 deluxe trowels. There are 2,500 hours of labor time available for production each week. The maximum weekly sales for the basic and deluxe trowels are 2,000 and 1,000 units, respectively. Fixed production costs total $200,000 per year. All selling costs are fixed.

Required: (a) Determine the optimal production level in number of units for each product. (b) Prepare an income statement for the company based on the optimal production level. (c) Calculate the company's tax liability assuming a tax rate of 30%.