Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Goshford Company produces a single product and has capacity to produce 155,000 units per month. Costs to produce its current sales of 124,000 units follow.
Goshford Company produces a single product and has capacity to produce 155,000 units per month. Costs to produce its current sales of 124,000 units follow. The regular selling price of the product is $148 per unit. Management is approached by a new customen who wants to purchase 31,000 units of the product for $80.10 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 ill be a $6.60 per unit shipping expense in addition to the regular variable selling and administrative expenses. Costs a 124,000 Units S 1,558,800 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Totals Per Unit $12.58 15.80 13.80 17.50 15.80 16.00 1,868,ee0 1,612,000 2,170,000 1,868,000 1,984,08e $89.00 $11,036,800 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $80.10 per unit Normal Volume Volume Total Costs and expenses Total costs and expenses Net income (oss
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started