At the end of the year, a company offered to buy 4,820 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 68,800 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,307,200
Cost of goods sold		533,200
Gross margin		$774,000
Selling and administrative costs		169,936
Profit		$604,064

For the year, fixed cost of goods sold were $149,984, and fixed selling and administrative costs were $81,872. The special order product has some unique features that will require additional material costs of $0.72 per unit and the rental of special equipment for $2,500.

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 $0.18. The effect of reducing the selling price will be to decrease firm profits by