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Goshford Company produces a single product and has capacity to produce 150.000 units per month Costs to produce its current sales of 120.000 units follow.

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Goshford Company produces a single product and has capacity to produce 150.000 units per month Costs to produce its current sales of 120.000 units follow. The regular selling price of the product is $130 per unit Management is approached by a new customer who wants to purchase 30,000 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 $7.00 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 $12.5e 15.00 11.ee 17.se 17.be 15.88 SRA. AR Costs at 12e, Bee Units $1,500,00 1.800.000 1, 32e, cea 2,1ee, Bee 2,840, 1,80e, cea 510, 560,00 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 Costs and expenses (1.500,000) (1.800.000 Direct labor Variable overhead Fored overhead Variable seling and admin exp Fored selling and admin exp (1.500.000) (1.800.000) (1.320.000) (2.100.000) (2,040.000) (1.800,000) (1.320.000) (2.100.000) (2,040.000) (1.800.000) Total costs and expenses Net income (los) (10.580.000) 15 (10.560.000) (10.560 000) $110.500.000 $ 0

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