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Goshford Company produces a single product and has capacity to produce 100,000 units per month Costs to produce its current sales of 80 000 units

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Goshford Company produces a single product and has capacity to produce 100,000 units per month Costs to produce its current sales of 80 000 units follow. The regular selling price of the product is $100 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $75.00 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 $5.00 per unit shipping expense in addition to the regular variable selling and administrative expenses Costs at 80.000 Direct materials Direct labor Variable wanufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Totals Per Unit $12.50 15.00 10.00 17.50 14.00 13.00 582.00 $1,000,000 1,200.000 300,000 1,400,000 1,120,000 1040.000 $6,560,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $75.00 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 $75.00 per unit 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 $75.00 per unit. Normal Volume Additional Volume Combined Total Costs and expenses Total costs and expenses Net Income (loss) Accept or Roject> Complete this question by entering your answers in the tabs below. Net Income Accept or Reject Determine whether management should accept or reject the new business. 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 Determine whether management should accept or reject the new business. Determine whether management should accept or reject the new business

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