At the end of the year, a company offered to buy 4,270 units of a product from X Company for $12.00 each instead of the company's regular price of $18.00 each. The following income statement is for the 64,100 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,153,800
Cost of goods sold		519,851
Gross margin		$633,949
Selling and administrative costs		168,583
Profit		$465,366

For the year, variable cost of goods sold were $399,984, and variable selling and administrative costs were $77,561. 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 $3,000. Profit on the special order would be:

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 $0.16. The effect of reducing the selling price will be to decrease firm profits by: