Goshford Company produces a single product and has capacity to produce 105,000 units per month Costs to produce its current sales of 84,000 units follow. The regular selling price of the product is $148 per unit. Manngement is approached by a new customer who wants to purchase 21,000 units of the product for $83.70 per unit. If the order is accepted, there will be no additional foved 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.ch per unit shipping expense in addition to the regutar variable selling and administrative expenses. Direet materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Totale Per Unit $12.50 15.00 15.00 17.50 18.00 15.00 $93.00 Coats at 84.000 Unit $1.050,000 1,260.000 1,260,000 1.470,000 1.512,000 1,260,000 $7,812,000 Calculate the combined total net income if the company accepts the offer to sell additional units of the reduced price of $83.70 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 $83.70 per unit. Normal Volume Additional Volume Combined Total $ 0 Costs and expenses 0 0 0 0 D 0 0 0 0 Total costs and expenses Net income (loss) $ os 0$ Goshford Company produces a single product and has capacity to produce 105,000 units per month. Costs to pro sales of 84,000 units follow. The regular selling price of the product is $148 per unit. Management is approached E who wants to purchase 21,000 units of the product for $83.70 per unit. If the order is accepted, there will be no ad manufacturing overhead and no additional fixed selling and administrative expenses. The customer is not in the co selling territory, so there will be a $5.60 per unit shipping expense in addition to the regular variable selling and ac 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 15.00 17.50 18.00 15.00 $93.00 Costs at 84.000 Units $1,050,000 1,260,000 1,260,000 1,470,000 1,512,000 1,260,000 $7,812,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced pm 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 Determine whether management should accept or reject the new business. Determine whether management should accept or reject the new business,
