Im not too sure on what to do with this one.

Haley Company produces one product and has the capacity to make 150,000 units per month. The cost that is associated with producing 125,000 units is shown below: Account Cost at 125,000 units Direct Materials $2,500,000.00 Variable Manufacturing overhead $1,250,000.00 Fixed Manufacturing overhead $1,875,000.00 Variable selling and administrative $ 1,500,000.00 expenses Fixed selling and administrative $ 14.00 $1,750,000.00 expenses Totals $ 101.00 $12,625,000.00 The selling price per unit is $150. The Haley company was contacted by a prospective customer interested in purchasing 25,000 units for $100. The management team is considering this offer and in the meeting about this new prospect, you (the management accountant), stated that the xed cost will remain the same, but the variable cost will increase along with $10 shipping expense due to the customer's international location. Management has asked you to determine if they should accept or reject the new customer proposal and what nonmonetary factors should be considered. 125000 Cost at 125,000 Account Per Unit units Direct Materials 20.00 $2,500,000.00 Direct Labor 30.00 $3,750,000.00 Variable Manufacturing overhead 10.00 $1,250,000.00 Fixed Manufacturingoverhead 15.00 $1,875,000.00 Variable selling and adminidtrative expenses 12.00 $1,500,000.00 Fixed selling and administrative expenses 14.00 $1,750,000.00 Totals $101.00 $12,625,000.00 Accounts Normal Volume | Additional volume Combined Total Sales Cost and Expenses: Direct Materials Direct Labor Variable Overhead Fixed Overhead Variable Selling and Admin exp. Fixed selling and Admin exp. Total costs and expenses: Net Income $ $ $