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Goshford Company produces a single product and has capacity to produce 195,000 units per month. Costs to produce its current sales of 156,000 units follow.

Goshford Company produces a single product and has capacity to produce 195,000 units per month. Costs to produce its current sales of 156,000 units follow. The regular selling price of the product is $146 per unit. Management is approached by a new customer who wants to purchase 39,000 units of the product for $80.10 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 $6.80 per unit shipping expense in addition to the regular variable selling and administrative expenses. Per Unit Direct materials Direct labor $12.50 Costs at 156,000 Units $1,950,000 15.00 2,340,000 Variable manufacturing overhead 11.00 1,716,000 Fixed manufacturing overhead- 17.50 2,730,000 Variable selling and administrative expenses 18.00 2,808,000 Fixed selling and administrative expenses 15.00 2,340,000 Totals $89.00 $13,884,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $80.10 per unit. Determine whether management should accept or reject the new business. Complete this question by entering your answers in the tabs below. < Prev 13 of 13 Next 23 Assignment (20 points) 13 Reject Saved 153. points Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price $80.10 per unit. Normal Volume Additional Volume Combined Total $ 0 eBook Costs and expenses: Hint 0 0 Print References 0 0 0 0 0 Total costs and expenses Net income (loss) $ 0 0 $ 0 0 0 $ 0 Net income Accept or Reject> Mc www

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