Goshford company produces s single product and has the capacity to produce 100,000 units per month. the cost to produce its current sales of $80,000 units follow.

the regular selling price of the product is $100 per unit. management is approached by a new customer who wants to purchase 20,000 units of the product for $75 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 per unit shipping expense in addition to the regular variable selling and administrative expenses.

per unit cost at 80,000 units
direct materials $12.50 $1,000,000
direct labor 15.00 1,200,000
variable manufacturing overhead 10.00 800,000
fixed manufacturing overhead 17.50 1,400,000
variable selling and administrative expenses 14.00 1,120,000
fixed selling and administrative exp 13.00 1,040,000
totals = $82.00 = $6,560,000

1. determine whether management should accept or reject the new business

2.what nonfinancial factors should management consider when deciding whether to take this order?