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Gostora company produces a single product and nas capacity to produce 139,000 units per month. Costs to produce its current sales of 108,000 units follow.

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Gostora company produces a single product and nas capacity to produce 139,000 units per month. Costs to produce its current sales of 108,000 units follow. The regular selling price of the product is $104 per unit. Management is approached by a new customer who wants to purchase 27,000 units of the product for $79.20 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed seling and administrative expenses. The customer is not in the company's regular seling territory, so there will be a $7.00 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 Tixed selling and administrative expenses Totala Costs at Per Unit 108,000 Units $12.50 $1,350,000 15.00 1,620,000 11.00 1,188,000 17.50 1,890,000 17.00 1,836,000 15.00 1.620.000 $88.00 $9,504,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $79.20 per unit. Detergnine whether management should accept or reject the new business. Complete this question by entering your answers in the tabs below. Net Income Accept or Reject Catalina na mashake the Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment and is considering dropping that product line. The following information is available regarding its canoe segment MARINETTE COMPANY Income Statenent-Canoe Segment Sales $3,300,000 Variable conts Direct materials $ 710,000 Direct labor 760,000 Variable overhead 560,000 Variable selling and administrative 330.000 Total variable costs 2.360.000 Contribution margin 940,000 Fixed costs Direct 635,000 560,000 Total Lixed costs 1.195.000 Not income 255,000) Indirect ces 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes

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