Chapter 10 question 1Farrow co. Expects to sell 500,000 units of its product in the next period with the following results Sales (500,000 units) $7,500,000Costs and expenses Direct materials $1,000,000Direct labor $2,000,000Overhead $500,000Selling expenses $750,000Administrative expenses $1,285,000Tot costs and expenses $5,535,000Net income $1,965,000I am confused with how to do the blue chart

Submit Check my work The company has an opportunity to sell 50,000 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 16% and (2) administrative expenses would increase by $215,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit. Should the company accept or reject the offer? Complete this question by entering your answers in the tabs below. Net Income Accept or Reject Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit. Additional Combined Normal Volume Volume Total Costs and expenses