Cobe Company has already manufactured 22,000 units of Product A at a cost of $15 per unit. The 22,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $300,000 total additional cost and be converted into 5,100 units of Product B and 11,400 units of Product C. Per unit selling price for Product B is $103 and for Product C is $52. 1. Prepare an analysis that shows whether the 22,000 units of Product A should be processed further or not? Sell as is Process Further Sales Relevant costs Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should Farrow Co. expects to sell 400.000 units of its product in the next period with the following results. $6,880, eee Sales (499,000 units) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Net income see, eee 1,680, eae 480, eee 680, eee 1,928, eae 4,428, eee $1,572,000 The company has an opportunity to sell 40,000 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) 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 $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. Normal Volume Additional Volume Combined Total 0 Costs and expenses: 0 0 0 0 0 0 0 Total costs and expenses Incremental income (loss) from new business S 0 S 0 0