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blems Check my work Goshford Company produces a single product and has capacity to produce 140,000 units per month. Costs to produce its current sales

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blems Check my work Goshford Company produces a single product and has capacity to produce 140,000 units per month. Costs to produce its current sales of 112,000 units follow. The regular selling price of the product is $128 per unit Management is approached by a new customer who wants to purchase 28,000 units of the product for $81.00 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is not in the company's regular selling territory, so there will be a $6.80 per unit shipping expense in addition to the regular variable selling and administrative expenses Costs at Per Unit 112, 090 Units Direct materials $12.50 $ 1,400, 060 Direct labor 15.00 1, 680,600 es Variable manufacturing overhead 13.00 1,456, 000 Fixed manufacturing overhead 17.50 1,960,900 Variable selling and administrative expenses 17.00 1, 904, 909 Fixed selling and administrative expenses 15.00 1, 680, 090 Totals $90.00 $ 10, 080, 090 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $81.00 per unit. Determine whether management should accept or reject the new business. Complete this question by entering your answers in the tabs below. Accept or Net Income Reject Prey. 8 of 10 Next >

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