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rd Company produces a single product and has capacity to produce 140,000 units per month Costs to produce its current sales of 112,000 units follow

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rd Company produces a single product and has capacity to produce 140,000 units per month Costs to produce its current sales of 112,000 units follow The regular selling price of the product is $120 per unit Management is approached by a new customer who wants to purchase 28,000 units of the product for $8100 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 $240 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 woninistrative expenses Totals Per Unit $12.50 15.00 13.00 17.50 17.ee 15.00 590.00 Costs at 112,000 units $1,400,000 1,680,000 1,456,00 1,000,000 1996.020 1,680,000 $10,000,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of 58100 per unit Determine whether management should accept or reject the new business. Complete this question by entering your answers in the tabs below. Accept or Net Income Reject 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 Additionat Combined Normal Volume Volume Total 5 13.40 0001 22176001 5 15657.600 5865

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