At the end of the year, a company offered to buy 4,510 units of a product from X Company for $11.00 each instead of the company's regular price of $18.00 each. The following income statement is for the 61,100 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,099,800
Cost of goods sold		543,790
Gross margin		$556,010
Selling and administrative costs		167,414
Profit		$388,596

For the year, fixed cost of goods sold were $120,367, and fixed selling and administrative costs were $76,375. The special order product has some unique features that will require additional material costs of $0.70 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