At the end of the year, a company offered to buy 4,480 units of a product from X Company for $12.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 64,700 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,099,900
Cost of goods sold		576,477
Gross margin		$523,423
Selling and administrative costs		146,222
Profit		$377,201

For the year, variable cost of goods sold were $459,370, and variable selling and administrative costs were $75,052. The special order product has some unique features that will require additional material costs of $0.80 per unit and the rental of special equipment for $2,000. 4. Profit on the special order would be

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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 $0.12. The effect of reducing the selling price will be to decrease firm profits by

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