Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,630 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 61,900 units of the product that X Company has already made and sold to its regular customers: Sales Cost of goods sold Gross margin Selling and administrative costs Profit $1,176,100 492,724 $683,376 152,274 $531,102 For the year, fixed cost of goods sold were $120,086, and fixed selling and administrative costs were $72,423. 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 $3,500. 4. Profit on the special order would be 12 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 $0.11. The effect of reducing the selling price will be to decrease firm profits by A Tries 0/3 Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,630 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 61,900 units of the product that X Company has already made and sold to its regular customers: Sales Cost of goods sold Gross margin Selling and administrative costs Profit $1,176,100 492,724 $683,376 152,274 $531,102 For the year, fixed cost of goods sold were $120,086, and fixed selling and administrative costs were $72,423. 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 $3,500. 4. Profit on the special order would be 12 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 $0.11. The effect of reducing the selling price will be to decrease firm profits by A Tries 0/3