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 $17.00 each. The following income statement is for the 65,100 units of the product that X Company has already made and sold to its regular customers: $1,106,700 526,659 Sales Cost of goods sold Gross margin Selling and administrative costs Profit $580,041 140,616 $439,425 For the year, variable cost of goods sold were $409,479, and variable selling and administrative costs were $69,006. 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 $2,000. 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 $0.10. The effect of reducing the selling price will be to decrease firm profits by OA: OB: Oc: OD: OE: OF: $2,767 $3,680 $4,895 $6,510 $8,658 $11,516 Submit Answer Tries 0/99