Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,350 units of a product from X Company for $12.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 67,000 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 $1,139,000 552,750 $586,250 170,180 $416,070 For the year, variable cost of goods sold were $407,360, and variable selling and administrative costs were $91,790. The special order product has some unique features that will require additional material costs of $0.85 per unit and the rental of special equipment for $4,000. 4. Profit on the special order would be 12905 Incorrect. Tries 3/3 Previous Tries 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