Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,960 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 68,200 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 $1,159,400 654,720 $504,680 165,044 $339,636 For the year, fixed cost of goods sold were $147,312, and fixed selling and administrative costs were $88,660. The special order product has some unique features that will require additional material costs of $0.90 per unit and the rental of special equipment for $2,500. 4. Profit on the special order would be | A: $1,684B: $2,105 C: $2,631 OD: $3,289 E: $4,111 | F: $5,138 Submit Answer 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 $0.15. The effect of reducing the selling price will be to decrease firm profits by C: $6,547 OD: $8,184 E: $10,230 F: $12,788 A: $4,190 Submit Answer B: $5,238 Tries 0/99