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 $124 per unit. Management is approached by a new customer who wants to purchase 21,000 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 $6.40 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 $12.50 15.00 14.00 17.50 15.00 14.00 Costs at 84,000 Units $1,050,000 1,260,000 1,176,000 1,470,000 1,260,000 1,176,000 $ 7,392,000 $88.00 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. 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 $79.20 per unit. Normal Volume Additional Volume Combined Total $ 0 Costs and expenses: 0 0 0 0 0 0 0 0 0 Total costs and expenses Net income (loss) $ $ 0 Net Income Accept or Reject> Varto Company has 8,800 units of its sole product in inventory that it produced last year at a cost of $34 each. This year's model is superior to last year's, and the 8,800 units cannot be sold at last year's regular selling price of $46 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $15 each or (2) they can be processed further at a cost of $94,100 and then sold for $25 each. Should Varto sell the products as is or process further and then sell them? INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue if processed further Revenue if sold as is Incremental revenue 0 Incremental net income(Loss) $ 0 The company should