Goshford Company produces a single product and has capacity to produce 150,000 units per month. Costs to produce its current sales of 120,000 units follow. The regular seling price of the product is $150 per untt Management is approached by a new customer who wants to purchase 30.000 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 adninistrative expenses Totals Per Unit $12.se 15.00 14.00 17.50 14.00 15.00 $88.ee Costs at 120,000 units $ 1,500, eee 1,800,000 1,680,000 2,100,000 1,680,eee 1,800,000 $19,568,000 Calculate the combined total net income of 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 Combined Volume Total 30,000 $ 150,000 120.000 0 0 Sales Costs and expenses Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and admin exp Forced selling and admin, exp 0 0 0 0 0 131 sales of 120,000 units follow. The regular selling price of the product is $150 per unit. Management is approached by a new customer who wants to purchase 30,000 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 over head Variable selling and administrative expenses Fixed selling and administrative expenses Totals Per Unit $12.50 15.00 14.00 17.50 14.00 15.00 $88.00 costs at 120,000 Units $ 1,580, eee 1,800,000 1,680,000 2,100,000 1,680,000 1,800,000 $19,568,000 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 Determine whether management should accept or reject the new business, Determine whether management should accept or reject the new business Net Income
