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Exercise 25-18 Accept new business or not LO A1 Goshford Company produces a single product and has capacity to produce 105.000 units per month Costs
Exercise 25-18 Accept new business or not LO A1 Goshford Company produces a single product and has capacity to produce 105.000 units per month Costs to produce its current sales of 84.000 units follow. The regular selling price of the product is $128 per unit Management is approached by a new customer who wants to purchase 21000 units of the product for $96 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 per unit shipping expense in addition to the regular variable selling and administrative expenses Costs at Per Unit $12.50 Direct materials Direct labor $ 1.050,000 1.554.000 1.200.000 1.470.000 1.1 . xedanufacturing Overhead Variable selling and instrative expenses fixed selling and doinistrative expenses 500 Cuculate the combined totalnet come the company to add to units at the reduced ce of 596 per unit Nommal Volume Volume Total
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