Farrow Co. expects to sell 200,000 units of its product in the next period with the following results.

Sales (200,000 units) $ 3,000,000 Costs and expenses

Direct materials 400,000

Direct labor 800,000

Overhead 200,000

Selling expenses 300,000

Administrative expenses 514,000

Total costs and expenses 2,214,000

Net income $ 786,000

The company has an opportunity to sell 20,000 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 16% 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 $12 per unit.