Goshford Company produces a single product and has capacity to produce 115,000 units per month. Costs to produce its current sales of 92,000 units follow. The regular selling price of the product is $130 per unit. Management is approached by a new customer who wants to purchase 23,000 units of the product for $79.20 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 $7.20 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 Per Unit $12.50 15.00 13.00 17.50 16.00 14.00 $88.00 Costs at 92,000 Units $1,150,000 1,380,000 1,196,000 1,610,000 1,472,000 1,288,000 $ 8,096,000 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. 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 $79.20 per unit. Normal Volume Additional Volume Combined Total $ 0 Costs and expenses: 0 0 0 0 0 0 0 0 0 Total costs and expenses Net income (loss) 0 0 $ $ 0 $ 0 Jones Products manufactures and sells to wholesalers approximately 200,000 packages per year of underwater markers at $3.90 per package. Annual costs for the production and sale of this quantity are shown in the table. Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 256,000 64,000 192,000 80,000 53,000 $645,000 A new wholesaler has offered to buy 33,000 packages for $3.44 each. These markers would be marketed under the wholesaler's name and would not affect Jones Products's sales through its normal channels. A study of the costs of this additional business reveals the following: Direct materials costs are 100% variable. Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require overtime pay at 172 times the usual labor rate. 30% of the normal annual overhead costs are fixed at any production level from 150,000 to 300,000 units. The remaining 70% of the annual overhead costs are variable with volume. Accepting the new business would involve no additional selling expenses. Accepting the new business would increase administrative expenses by a $5,000 fixed amount. Required: Complete the three-column comparative income statement that shows the following. (Round your intermediate calculations and per unit cost answers to 3 decimals.) 1. Annual operating income without the special order. 2. Annual operating income received from the new business only. 3. Combined annual operating income from normal business and the new business. Total Per Unit Amounts Normal Volume New Business Normal Volume New Business Combined Sales Variable costs: 0.000 0.000 0 0 0 0 0 0 Fixed costs: 0 0 0 0 0 0 0 $