Exercise 23-14 Accept new business or not LO P7 Goshford Company produces a single product and has capacity to produce 165,000 units per month. Costs to produce its current sales of 132,000 units follow. The regular selling price of the product is $128 per unit. Management is approached by a new customer who wants to purchase 33,000 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 $7.80 per unit shipping expense in addition to the regular variable selling and administrative expenses. 1:53:43 Costs at Per Unit 132,000 Units Direct materials Book $12.50 $ 1, 650, 000 Direct labor 15.00 1, 980, 000 Ask Variable manufacturing overhead 16.60. 1, 320,000 Fixed manufacturing overhead 17.50 2, 310,080 variable selling and administrative expenses 15.06 1, 980, 000 Fixed selling and administrative expenses 16.06 2, 112, 808 Totals $86.00 $ 11, 352, 000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $77.40 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 $77.40 per unit. Mc Graw Prev 6 Next > Hill e here to search O