Exercise 10-2 Accept new business or not LO A1 Farrow Co. expects to sell 400,000 units of its product in the next period with the following results Sales (408,800 units) Costs and expenses 56,888,088 Direct materials Direct labor Overhead Selling expenses Administrative expenss 800,000 1,6e0,e00 400,800 6e8,8e0 1,828,083 4,428,8ee $1,572,008 Total costs and expenses Net income The company has an opportunity to sell 40000 add tionol units at $13 per unit The additional sales would not affect its current expected sales. Direct materiais and tabor costs perunit woulg be the same for the additionai units as they are for the egular unts However, the additional volume would creste the following Incretensel costs: totes overhead would increase by 15 and 12 administrative expenses would increase by $172.000 Calculate the combined total net income f the compalv access the offer o sel additionalunts at the reduced price of $13perunt Total Norimal volueole