Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $108 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $80.10 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 $7.80 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 Per Unit $12.50 15.00 12.00 17.50 16.00 16.00 $89.00 Costs at 80,000 Units $1,000,000 1,200,000 960,000 1,400,000 1,280,000 1,280,000 $ 7,120,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $80.10 per unit. Normal Volume Additional Volume Combined Total Costs and expenses: Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $80.10 per unit. Normal Volume Additional Volume Combined Total Costs and expenses: Total costs and expenses Net income (loss) Determine whether management should accept or reject the new business. Accept O Reject Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is four units per hour. The machine's capacity is 2,300 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 3,910 units of Product TLX and 1,790 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. $s per unit Selling price per unit Variable costs per unit $13.50 4.05 $8.10 4.86 Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. (Round cost per unit answers to 2 decimal places.) Product TLX Product MTV Contribution margin per unit Contribution margin per production hour Total Product TLX 3,910 Product MTV 1,790 Maximum number of units to be sold Hours required to produce maximum units Product TLX Product MTV Total For Most Profitable Sales Mix Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin