Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Goshford Company produces slngle product end has cepaclty to produce 135,000 unlts per month. Costs to produce Its current sales of 108,000 unlts follow.
Goshford Company produces slngle product end has cepaclty to produce 135,000 unlts per month. Costs to produce Its current sales of 108,000 unlts follow. The regular selllng prlce of the product Is $130 per unlt Management Is approached by new customer who wants to purchase 27,000 unlts of the product for $79_20 per unlt Ifthe order Is accepted, Tere be no eddltlonal fixed manufacturlng overhead and no addltlonal fixed senlng and edmln[stratlve expenses. The customer Is not In the company's regular selllng terrrory, so there WII be a S6.80 per unlt shlpplng expense In addltlon to the regular varloOle selllng and edmlnlstratlve 312. se Is.ee 14. ee 14. ee Is.ee 388. ee expenses. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Totals per unit 17. Costs at les,aee units 31, 3se,eee S 9, see, ege Calculate the comblned total net Income Ifthe company accepts the offer to sell addltlonol unlls at the reduced prlce of S7g_20 per unlt Determlne whether management should accept or reject the new buslness Complete this question by entering your answers in the tabs below. Accept c Net Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $79.20 per unit. dito Normal Volume Costs and expenses Total costs and expenses Net income (loss) bine Accept or Reject
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started