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 $11.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 67,600 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 $1,149,200 487,396 $661,804 146,692 $515,112 For the year, fixed cost of goods sold were $131,820, and fixed selling and administrative costs were $68,276. 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 $3,500. 4. Profit on the special order would be C: $6,128 D: $8,151 E: $10,841 F: $14,418 A: $3,465 Submit Answer B: $4,608 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 $0.20. The effect of reducing the selling price will be to decrease firm profits by A: $6,430 B: $9,324 C: $13,520 OD: $19,604 E: $28,426 F: $41,217