Goshford Company produces a single product and has capacity to produce 180,000 units per month. Costs to produce its current sales of 144,000 units follow. The regular selling price of the product is $116 per unit. Management is approached by a new customer who wants to purchase 36,000 units of the product for $76.50 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 $6.60 per unit shipping expense in addition to the regular variable selling and administrative expenses. Per Unit Direct materials Direct labor $12.50 15.00 Variable manufacturing overhead 11.00 Costs at 144,000 Units $ 1,800,000 2,160,000 1,584,000 Fixed manufacturing overhead 17.50 2,520,000 Variable selling and administrative expenses Fixed selling and administrative expenses 16.00 2,304,000 Totals 13.00 $85.00 1,872,000 $12,240,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $76.50 per unit. Determine whether management should accept or reject the new business.