Goshford Company produces a single product and has capacity to produce 98,000 units per month. Costs to produce its current sales of 81,000 units follow. The regular selling price of the product is $100 per unit. Management is approached by a new customer who wants to purchase 15,000 units of the product for $77 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 $4 per unit shipping expense in addition to the regular variable selling and administrative expenses.

	Per Unit	Costs at 81,000 Units
Direct materials	$11.70	$947,700
Direct labor	16.00	1,296,000
Variable manufacturing overhead	8.10	656,100
Fixed manufacturing overhead	12.10	980,100
Variable selling and administrative expenses	12.00	972,000
Fixed selling and administrative expenses	14.00	1,134,000
Totals	$73.90	$5,985,900

Required: 1. Calculate the net income if the new business is accepted. Normal Volume Additional Volume Combined Total Costs and expenses: Total costs and expenses Incremental income (loss) from new business Should Goshford accept or reject the new business? 0