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Exercise 23-14 Accept new business or not LO P7 Goshford Company produces a single product and has capacity to produce 120,000 units per month. Costs

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Exercise 23-14 Accept new business or not LO P7 Goshford Company produces a single product and has capacity to produce 120,000 units per month. Costs to produce its current sales of 96,000 units follow. The regular selling price of the product is $146 per unit. Management is approached by a new customer who wants to purchase 24.000 units of the product for $78.30 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 $6.20 per unit shipping expense in addition to the regular variable selling and administrative expenses. Direct eaterials Direct labor Variable manufacturing overhead Fixed eanufacturing overhead Variable selling and administrative expenses Fixed selling and adsinistrative expenses Totals Per Unit $12.58 15.03 13.03 17.58 15.ea 14.00 $87.68 Costs at 96,820 Units $1,288, esa 1,448, e38 1,248, 1,688,888 2,448, es 1.344.883 $8,352, ees Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $78,30 per unit. Determine whether management should accept or reject the new business. andere met the ne Complete this question by entering your answers in the tabs below. Net Income Net Income are on Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $78.30 per unit. VA Normal Volume Additional Volume Combined Total Costs and expenses / lololololololo Total costs and expenses Net income (loss) o OSO 0 $ Accept or Reject>

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