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Goshford Company produces a single product and has capacity to produce 190,000 units per month Costs to produce its current sales of 152,000 units follow.

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Goshford Company produces a single product and has capacity to produce 190,000 units per month Costs to produce its current sales of 152,000 units follow. The regular selling price of the product is $120 per unit. Management is approached by a new customer who wants to purchase 38,000 units of the product for $8010 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 $6 80 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 Fixed selling and administrative expenses Totals Costs at Per Unit 152,000 Units $12.50 $ 1,900,ese 15.00 2,280, eee 11.00 1.622.ee 17.50 2,660,000 17.00 2,584.ee 16.00 12.432, eee $89.00 $13,528.000 Calculate the combined total net income of the company accepts the offer to sell additional units of the reduced price of $80.10 per Combined Normal Additional Volume Costs and expenses Tot depen ) N om

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