Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,930 units of a product from X Company for $11.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 65,300 units of the product that X Company has already made and sold to its regular customers: $1,110,100 553,744 $556,356 Sales Cost of goods sold Gross margin Selling and administrative costs Profit 171,086 $385,270 For the year, variable cost of goods sold were $430,327, and variable selling and administrative costs were $80,972. The special order product has some unique features that will require additional material costs of $0.71 per unit and the rental of special equipment for $4,500. 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