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X Company produces 68,800 units of its regular product each year and sells each one for $13.00. The following cost information is available: Total Per-Unit

X Company produces 68,800 units of its regular product each year and sells each one for $13.00. The following cost information is available:

Total Per-Unit
Direct materials $145,168 $2.11
Direct labor 116,960 1.70
Variable overhead 221,536 3.22
Fixed overhead 149,984 2.18
Variable selling 90,816 1.32
Fixed selling 86,000 1.25
Total $810,464 $11.78

A company has offered to buy 4,160 units for $13.45 each. Because the special order product is slightly different than the regular product, direct material costs will increase by $0.20 per unit, and some special equipment will have to be rented for a total of $17,000.

1. What would profit on the special order be?

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2. Assume that if X Company accepts the special order, regular sales would fall to 67,700 units. The effect of this fall in regular sales would be to decrease company profit by

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