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Goshford Company produces a single product and has capacity to produce 115,000 units per month Costs to produce its current sales of 92,000 units follow.

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Goshford Company produces a single product and has capacity to produce 115,000 units per month Costs to produce its current sales of 92,000 units follow. The regular selling price of the product is $146 per unit. Management is approached by a new customer who wants to purchase 23,000 units of the product for $78,30 per unit. If the order is accepted, there will be no additional Mixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is not in the company's regular seling territory, so there will be a $7.80 per unit shipping expense in addition to the regular variable selling and administrative expenses Direct materials Direet labor Variable manufacturing overhead Fixed manutacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Totals Costaat Per Unit 92,000 Unite $12.50 $1,150,000 15.00 1,380,000 13.00 1.196,000 17.50 1,610,000 16.00 1,472,000 11.00 1.196.000 $87.00 58,000,000 Calculate the combined total net Income if the company accepts the offer to sell additional units at the reduced price of $78.30 per unt. 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 $78.30 per unit. Normal Volume Additional Volume Combined Total Sales Costs and expenses Direct materials Acceptor Net Income Reject Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $78.30 per unit Normal Volume Additional Volume Combined Total 0 0 Costs and expenses Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and admin. exp Fixed selling and admin. exp 0 0 0 O 0 Total costs and expenses Net Income (los) 0 $ 0 S 0 Notlocon Accept or Reject> Determine whether management should accept or reject the new business, Determine whether management should accept or reject the new business. ( Net Income Accept or Reject

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