At the end of the year, a company offered to buy 4,650 units of a product from X Company for $11.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 68,900 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,171,300
Cost of goods sold		596,674
Gross margin		$574,626
Selling and administrative costs		175,006
Profit		$399,620

For the year, variable cost of goods sold were $457,496, and variable selling and administrative costs were $93,704. The special order product has some unique features that will require additional material costs of $0.89 per unit and the rental of special equipment for $2,500. 4. Profit on the special order would be

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 $0.11. The effect of reducing the selling price will be to decrease firm profits by