Goshford company produces a single product and has a capacity to produce 100,000 units per month.

Exercise 10-3 Accept new business or not LO A1 Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current regular selling price of the product is $130 per unit. Management is approached by a new customes who wants to purchase 20,000 units of the product for $83.70 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative selling territory, so there will be a $760 per unit shipping expense in addition to the regular variable selling and administrative expenses expenses. The customer is not in the company's regular Costs at Per Unit88,e80 Units Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Totals $12.50 $1,000,000 1,200,00e 1, 200,000 1,400,000 1,360,000 16.001 280,00 93.00$7,440,000 15.00 15.00 17.50 17.00 Calculate the combined total net income if the company accepts the offer to sell additional unts at the reduced price of $8370 per unit