Last year, X Company sold 65,400 units of its only product for $19.00 each. Total costs were as follows:

Cost of goods sold
Variable	$375,396
Fixed	136,032
Selling and administrative
Variable	$71,940
Fixed	94,830

At the end of the year, a company offered to buy 4,200 units of the product for $11.00 each instead of $19.00. X Company's production manager thought that the special order units would probably require additional variable costs per unit of $1.06 and the rental of special equipment for $1,000. X Company had the capacity to produce the additional units, and there would have been no selling and administrative costs for the special order. But X Company still rejected the order.


4. If X Company had accepted the special order, firm profits would have increased by … ?

5. There was concern that regular customers would have found out about the special order, and X Company's regular sales this year would have fallen by 800 units. The result of these lost sales would have been to reduce X Company's profits this year by … ?