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Goshford Company produces a single product and has capacity to produce 185,000 units per month. Costs to produce its current sales of 148,000 units follow.

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Goshford Company produces a single product and has capacity to produce 185,000 units per month. Costs to produce its current sales of 148,000 units follow. The regular selling price of the product is $144 per unit. Management is approached by a new customer who wants to purchase 37000 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 seling territory, so there will be a $740 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 velling and administrative expenses rotals Per Unit $12.50 15.00 12.00 17.50 18:00 13.00 $88.00 Costs at 148,000 Units $ 1,350,000 2,220,000 1,776,000 2,590,000 2,664,000 1,924,000 $13,024,000 Calculate the combined total net income in the company accepts the offer to sell additional units at the reduced price of $79.20 per unt. Determine whether management should accept or reject the new business Complete this question by entering your answers in the tabs below. Accept or Net Income Reject Calculate the combined total niet income if the company accept the offer to sell additional units at the reduced price of $70,20 per unit Normal Volume Additional Volume Combined Total Net Income Accept or Reject Calculate the combined total net income if the company accepts the offer to sell additional units at the reduc $79.20 per unit. Normal Volume Additional Volume Combined Total Costs and expenses Total costs and expenses Net income (loss) Net Income Accept or Reject>

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