Goshford Company produces sales of 100,000 units follow. The regular selling a single product and has capacity to produce 125,000 units per month. Costs to produce its current price of the product is $136 per unit. Management is approached by a new customer who wants to purchase 25.000 units of the product for $77.40 per unit. If the order is accepted, there will be no additional fixed ring overhead and no additional fixed selling and administrative expenses. The customer is not in the company's regular per unit shipping expense in addition to the regular variable selling and administrative seling terntory, so there will be a $740 expenses. Costs at Per Unit 100, 000 Unit $12.50 $1,250,000 1,500,000 1,400,000 1,750,000 1,400,000 13.001.300,00 86.00 $8,600,000 Direct materials Direct Labor 15.00 Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 14.00 17.50 14.00 Totals Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $77.40 per unit. Additional Combined Volume Normal Volume Total Costs and expenses 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 $7 unit. Normal Volume Additional Combined Volume Total Costs and expenses: Total costs and expenses Net income (loss) nces Determine whether management should accept or reject the new business. Accept Reject