At the end of the year, a company offered to buy 4,390 units of a product from X Company for $12.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 65,300 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,110,100
Cost of goods sold		614,473
Gross margin		$495,627
Selling and administrative costs		156,067
Profit		$339,560

For the year, fixed cost of goods sold were $139,742, and fixed selling and administrative costs were $81,625. The special order product has some unique features that will require additional material costs of $0.74 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 $0.12. The effect of reducing the selling price will be to decrease firm profits by______