At the end of the year, a company offered to buy 4,110 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 68,500 units of the product that X Company has already made and sold to its regular customers:

At the end of the year, a company offered to buy 4,110 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 68,500 units of the product that X Company has already made and sold to its regular customers: $1,164,500 658,970 $505,530 Sales Cost of goods sold Gross margin Selling and administrative costs Profit 160,975 $344,555 For the year, variable cost of goods sold were $514,435, and variable selling and administrative costs were $86,995. The special order product has some unique features that will require additional material costs of $0.77 per unit and the rental of special equipment for $2,000. 4. Profit on the special order would be Submit Answer Tries 0/3 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 Submit Answer Tries 0/3