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Farrow Ca. expects to sell 300,000 units of its product in the next period with the following results. The comparry has an opportunity to sell

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Farrow Ca. expects to sell 300,000 units of its product in the next period with the following results. The comparry has an opportunity to sell 30,000 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 inits 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) odministrative expenses would increase by $129,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit. 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? The company should reject the offer The company should accept the offer

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