Exercise 23-14 Accept new business or not LO P7 Goshford Company produces a single product and has capacity to produce 130,000 units per month. Costs to produce its current sales of 104,000 units follow. The regular selling price of the product is $136 per unit. Management is approached by a new customer who wants to purchase 26,000 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 $6.60 per unit shipping expense in addition to the regular variable selling and administrative expenses. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Totals Costs at Per Unit 104,000 Units $12.50 $1,300,000 15.00 1,560,000 15.00 1,560,000 17.50 1,820,000 17.00 1,768,000 13.00 $90.00 1,352,000 $9,360,000 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. Net Income Accept or Reject 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. Costs and expenses Normal Volume Additional Volume Combined Total 0 0 0 0 0 0 0 Total costs and expenses 0 0 0 Net income (loss) S 0 S 0 S 0 Accept or Reject >