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Saved Exercise 10-3 Accept new business or not LO A1 Goshford Company produces a single product and has capacity to produce 165,000 units per month.

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Saved Exercise 10-3 Accept new business or not LO A1 Goshford Company produces a single product and has capacity to produce 165,000 units per month. Costs to produce its current sales of 132,000 units follow. The regular selling price of the product is $136 per unit. Management is approached by a new customer who wants to purchase 33,000 units of the product for $76.50 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 $7.40 per unit shipping expense in addition to the regular variable selling and administrative expenses Costs at Per Unit 132,000 units Direct materials Direct labor Varlable nanafacturing overhead Fixed nanufacturing overhead Variable selling and administrative expenses rixed selling and administrative expenses Totals 12.501,650,00 1,980,000 1,584,000 2,310,000 1,980,000 15.00 12.00 17.50 15.00 13.00 1716,000 85.00$11,220,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $76.50 per unit. Additional Combined Normal Volume Volume Total Costs and expenses: Total costs and expenses Net income (loss)

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