Chapter 22 9 Exercise 23-13 Accept new business or not LO P7 Parrow Co expects to sell 200,000 units of its product in the next period with the following results. 5 Dom Sales (200,000 units) costs and expenses Direct materials Direct labor Overhead Selling expenses Asinistrative expenses Total costs and expenses Net Income $3,000,000 100,000 800.00 200,000 300.000 DOR 320,000 700.000 The company has an opportunity to sell 20.000 additional units at S13 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 unes However, the additional volume would create the following incremental costs: (total overhead would increase by 15% and (2) administrative expenses would increase by $86,000 Calculate the combined total net income of the company accepts the offer to sell additional units at the reduced price of $13 per unit. Should the company accept or reject the offer? PESEPTIT 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 $13 Det unit Normal Volume Additional Volume Combined Total 0 Costs and expenses 0 0 0 0 0 Total costs and expenses Incremental income (los) from new business 0 0 0 os s 0 0 KNO Accept or Reject>