At the end of the year, a company offered to buy 4,570 units of a product from X Company for $11.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 68,900 units of the product that X Company has already made and sold to its regular customers:

Sales		$1,309,100
Cost of goods sold		538,798
Gross margin		$770,302
Selling and administrative costs		174,317
Profit		$595,985

For the year, variable cost of goods sold were $405,132, and variable selling and administrative costs were $86,125. The special order product has some unique features that will require additional material costs of $0.87 per unit and the rental of special equipment for $3,000. 4. Profit on the special order would be

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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