Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,680 units of a product from X Company for $12.00 each instead of the company's regular price of $18.00 each. The following income statement is for the 60,200 units of the product that X Company has already made and sold to its regular customers: Sales $1,083,600 Cost of goods sold 505,078 Gross margin $578,522 Selling and administrative costs 152,908 Profit $425,614 For the year, variable cost of goods sold were $369,026, and variable selling and administrative costs were $77,658. The special order product has some unique features that will require additional material costs of $0.79 per unit and the rental of special equipment for $4,500. 4. Profit on the special order would be A: $6,777 B: $8,472 C: $10,590 D: $13,237 E: $16,546 F: $20,683 Tries 0/99 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 A: $8,428 B: $9,861 C: $11,537 D: $13,498 E: $15,793 F: $18,478