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Chapter 23 Homework G Saved Help Save & Exit Submit Check my work 2 Goshford Company produces a single product and has capacity to produce
Chapter 23 Homework G Saved Help Save & Exit Submit Check my work 2 Goshford Company produces a single product and has capacity to produce 135,000 units per month. Costs to produce its current sales of 108,000 units follow. The regular selling price of the product is $146 per unit. Management is approached by a new customer who wants to purchase 27,000 units of the product for $77.40 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 $760 per unit shipping expense in addition to the regular variable selling and administrative expenses 8.33 polnts e Book Costs at Per Unit 108,8e Units $12.50 15.00 11.00 17.50 16.00 14.00 $86.00 $1,358,080 1,628,000 1,188,0ee 1,898,003 1,728,0a0 1,512,00e $9,288,080 Hint Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Totals Print References Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $7740 per unit. Normal Volume Additional Combined Volume Total Mc Graw Prev 2 of 6 Next >
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