arrow Co. expects to sell 400,000 units of its product in the next period with the following results.

Sales (400,000 units)	$	6,000,000
Costs and expenses
Direct materials		800,000
Direct labor		1,600,000
Overhead		400,000
Selling expenses		600,000
Administrative expenses		1,028,000
Total costs and expenses		4,428,000
Net income	$	1,572,000

The company has an opportunity to sell 40,000 additional units at $13 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 would create the following incremental costs: (1) total overhead would increase by 15% and (2) administrative expenses would increase by $172,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit.

Farrow Co. expects to sell 400,000 units of ts product In the next perlod with the follown $6,88e,60 Sales (408,eee units) Costs and expenses 899,889 1,660,89e 480,889 680,889 1,828,80e0 4,428,000 $1,572,839 Direct naterials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Net income The company has an opportunty to sell 40,000 additional unlts at $13 per unit. The addtiona expected sales. Direct materials and labor costs per unlt would be the same for the additiona However, the additional volume would create the following Incremenital costs:() total overhe administrative expenses would Increase by $172000 Calculate the combined total net Income if the company accepts the offer to sell addltional un Normal Volume Volume Total Costs and expenses Total costs and expenses incorme foss from nevi business pe here to search