As of December 1, 2021, X Company had produced and sold 63,100 units of its only product. The following is the company's December 1 Income Statement:

		Total	Per-Unit
Sales		$848,064	$13.44
Cost of goods sold		530,040	8.40
Gross profit		318,024	5.04
Selling & administrative costs		164,060	2.60
Profit		$153,964	$2.44

Analysis of cost of goods sold reveals that $132,510 of it was fixed; a similar analysis of selling & administrative costs reveals that $88,340 of it was variable.

On December 2, a company offered to buy 4,070 units for $12.12 each. Because the special order product was slightly different than the regular product, direct material costs were expected to decrease by $0.15 per unit, and some special equipment would have to be rented for a total of $19,000.

4. What would profit have been on the special order?

5. If X Company had accepted the special order, it would have had to lower the selling price of its regular product to $12.97 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by