Factor Company has an opportunity to sell 20,000 additional units at $13 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 $86,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit. Normal Volume Additional Volume $ 3,000,000 $ 260.000 Combined Total 3,200,000 Snes Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Incremental income (155) from new business 400,000 40,000 800.000 80,000 200,000 230,000 300.000 30,000 514,000 0,000 2.214,000 980,000 786,000 $ (720,000) 440,000 BB0,000 430,000 330,000 1.114,000 3,194.000 66.000 $ Should the company accept or reject the offer? The company should accept the offer The company should reject the offer