Goshford Company produces a single product and has capacity to produce 150,000 units per month. Costs to produce its sales of 120,000 units follow. The regular selling price of the product is $104 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 $5.40 per unit shipping expense in addition to the regular variable selling and administrative expenses Per Unit 120, 00 inits Per Unit 120,000 Units Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Variable selling and administrative expenses Fixed se11ling and administrative expenses Totals $12.50 1,500,000 1,800,000 1,440,000 2,100,000 2,040,000 14.001,680,000 $88.00 $10,560,000 15.00 12.00 17.50 17.00 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. Additional Volume Combined Total Normal Volume Sales Costs and expenses: Direct materials Direct labor Variable overhead 2 Additional Volume Combined Total Normal Volume Sales Costs and expenses 0.9 points Direct materials Direct labor Variable overhead Fixed overhead Variable selling and admin. exp Fixed selling and admin. exp Total costs and expenses eBook Hint Print Total costs and expenses Net income (loss) Determine whether management should accept or reject the new business. Accept Reiect KPrev2 of 11 Next >