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Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow.

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Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $100 per unit Management is approached by a new customer who wants to purchase 20,000 units of the product for $75.00 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 $5.00 per unit shipping expense in addition to the regular variable selling and administrative expenses Costs at 80,000 Per Unit $12.50 Units $ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 1,000,000 1,200,000 800,000 1,400,ee0 15.00 10.e0 17.50 14.00 1,120,000 13.00 1,040,000 Totals $82.00 $ 6,560,00e Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $75.00 per unit. Determine whether management should accept or reject the new business Complete this question by entering your answers in the tabs below Accept or Reject Net Income Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $75.00 per unit. Normal Volume Addicional Volume Combined Total 0 Costs and expenses 0 0 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $7 unit. Determine whether management should accept or reject the new business. Complete this question by entering your answers in the tabs below. Accept or Reject Net Income Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $75.00 per unit. es Combined Total Additional Volume Normal Volume 0 Costs and expenses 0 0 0 0 0 0 Total costs and expenses 0 0 Net income (loss) $ 0 $ 0 Accept or Reject > Net freoe

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