At the end of the year, a company offered to buy 4,890 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 66,000 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,122,000
Cost of goods sold		546,480
Gross margin		$575,520
Selling and administrative costs		155,760
Profit		$419,760

For the year, variable cost of goods sold were $419,760, and variable selling and administrative costs were $66,000. The special order product has some unique features that will require additional material costs of $0.75 per unit and the rental of special equipment for $4,000. 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 $0.16. The effect of reducing the selling price will be to decrease firm profits by