)1100)CUnhect.html -Connect Ch 23 & 25 Help Save & Ex Farrow Co. expects to sell 150,000 units of its product in the next period with the following results. Sales (150,000 units) Costs and expenses $2,250,000 Direct materials Direct labor Overhead 300,000 600,000 150,000 225,000 385,500 1,660, 500 S 589,500 Selling expenses Administrative expenses Total costs and expenses Net income 10:57 The company has an opportunity to sell 15,000 additional units at $12 per unit. The additional sales would expected sales. Direct materials and labor costs per unit would be the same for the additi However, the additional volume would create the following incremental costs: administrative expenses would increase by $64,500 ional units as they are for the regular units. 1) total overhead would increase by 15% and (2) Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit Normal Volume Total 180,000 $180,000 Costs and expenses 45,000 75,000 30,000 15,000 Direct materials 60,000 Overhead