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Ch 10-HW 6 Saved Help Save & Exit Submit Check my work 4 Farrow Co. expects to sell 300,000 units of its product in the
Ch 10-HW 6 Saved Help Save & Exit Submit Check my work 4 Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. 4,5e0,080 Sales (300,ee0 units) Costs and expenses 10 points Direct materials Direct labor Overhead Selling expenses Administrative expenses 600,008 1,280,888 380,000 459.808 771,000 3,321,008 $1,179,000 eBook Hint Total costs and expenses Net income Print References The company has an opportunity to sell 30,000 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 would create the following incremental costs: (1) total overhead would increase by 15% and (2) adminlstrative expenses would Increase by $129,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit. om Normal Volume Volume Costs and expenses Mc
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