At the end of the year, a company offered to buy 4,510 units of a product from X Company for $11.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 63,900 units of the product that X Company has already made and sold to its regular customers:

At the end of the year, a company offered to buy 4,510 units of a product from X Company for $11.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 63,900 units of the product that X Company has already made and sold to its regular customers: Sales Cost of goods sold Gross margin Selling and administrative costs Profit $1,214,100 497,781 $716,319 171,252 $545,067 For the year, fixed cost of goods sold were $125,244, and fixed selling and administrative costs were $89,460. The special order product has some unique features that will require additional material costs of $0.76 per unit and the rental of special equipment for $3,500. 4. Profit on the special order would be Submit Answer Tries 0/3 5. The marketing manager thinks that if X Company accepts the special order, regular customers will be lost unless the selling price for them is reduced by $0.20. The effect of reducing the selling price will be to decrease firm profits by Submit Answer Tries 0/3