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Farrow Co. expects to sell 200.000 units of its product in the next period with the following results. units $3,000,00e Costs and expenses Direct materials
Farrow Co. expects to sell 200.000 units of its product in the next period with the following results. units $3,000,00e Costs and expenses Direct materials Direct labor Overhead 400,000 800,000 200,000 300,000 514,000 2,214,000 $ 786,000 Selling expenses Adninistrative expenses Total costs and expenses The 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 the additional volume would create the following incremental costs: total overhead would increase by 16% and 2) expenses would increase by $86,000. of $13 per unit
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