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Goshford Company produces a single product and has capacity to produce 100.000 unit 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 unit per month. Costs to produce its current sales of 80.000 units follow. The regular selling price of the product $100 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $ 75 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead, and no addiiion.il fixed selling and administrative expenses. The customer is not in the company's regular selling territory, so there will be a $5 per unit shipping expense in addition to the regular variable selling and administrative expenses. Determine whether management should accept or reject the new business What nonfinancial factors should management consider when deeding whether to take dm order

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