At the end of the year, a company offered to buy 4,940 units of a product from X Company for $12.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 61,800 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,174,200
Cost of goods sold		525,918
Gross margin		$648,282
Selling and administrative costs		132,870
Profit		$515,412

For the year, fixed cost of goods sold were $125,454, and fixed selling and administrative costs were $64,890. 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 $2,000. 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 $0.14. The effect of reducing the selling price will be to decrease firm profits by