At the end of the year, a company offered to buy 4,070 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 60,100 units of the product that X Company has already made and sold to its regular customers:

sales 1141900

cost of good sold 504239

gross margin 637661

selling and adminstrative costs: 141235

profit 496426

For the year, fixed cost of goods sold were $118,397, and fixed selling and administrative costs were $70,918. The special order product has some unique features that will require additional material costs of $0.88 per unit and the rental of special equipment for $4,000.

1.Profit on the special order would be?

2.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 $0.10. The effect of reducing the selling price will be to decrease firm profits by?