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please help!! thank you!! Goshford Company produces a single product and has capacity to produce 145,000 units per month. Costs to produce its current sales
please help!! thank you!!
Goshford Company produces a single product and has capacity to produce 145,000 units per month. Costs to produce its current sales of 116,000 units follow. The regular selling price of the product is $100 per unit. Management is approached by a new customer who wants to purchase 29,000 units of the product for $81.00 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 $5.60 per unit shipping expense in addition to the regular variable selling and administrative expenses. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $81.00 per unit. Determine whether management should accept or reject the new business. Complete this question by entering your answers in the tabs below. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $81.00 per unit. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $81.00 per unit. Determine whether management should accept or reject the new businessStep by Step Solution
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