At the end of the year, a company offered to buy 4,490 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 68,800 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,169,600
Cost of goods sold		544,896
Gross margin		$624,704
Selling and administrative costs		178,880
Profit		$445,824

For the year, fixed cost of goods sold were $141,728, and fixed selling and administrative costs were $101,136. The special order product has some unique features that will require additional material costs of $0.81 per unit and the rental of special equipment for $5,000. 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: