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%21%2Fconne aSearch W Chapter 23 2 Farrow Co. expects to sell 150,.000 units of its product in the next period with the following results. 2,250,000

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%21%2Fconne aSearch W Chapter 23 2 Farrow Co. expects to sell 150,.000 units of its product in the next period with the following results. 2,250,000 Sales (150,000 units) Coats and expenses Direct materials Direct 1abor overhead 300,000 600,000 150,000 225,000 385, 500 Total costs and expenses 589,500 The company has an opportunity to sell 15,000 additional units at $12 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume administrative expenses would Increase by $64,500 would create the following incremental costs: 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. ype here to search

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