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Farrow Co expects to sell 300,000 units of its product in the next period with the following results $4.500.000 Sales 300,000 units) Costs and expenses

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Farrow Co expects to sell 300,000 units of its product in the next period with the following results $4.500.000 Sales 300,000 units) Costs and expenses Direct materials Direct labor Overhead selling penses Administrative expenses Total costs and expenses Net incon 600,000 1,200,000 300,000 450,000 771,000 3.321,000 $1,179,000 The company 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 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 $129,000 Cokutate the combined total net income if the company accepts the offer to sell additional units at the reduced price of 512 per unit Should the company accept or reject the offer? Complete this question by entering your answers in the tabs below. Net Income Accept of Project Calculate the combined total net income if the company accept the offer to sell additional units at the reduced price of $12 per unit Moma Volim Volume Total Cotande penes Tous contando incremental income ousa) from new business Accept of Reject> DOWOSOS DE PE units) $4,500,000 costs Direct labor Dwerhead 600,000 1,200.000 300,000 450.000 271.000 1.11.200 51,175.000 ministrative Tal costs and expenses The company 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 units as they are for the regular units However, the additional volume would create the following incremental costs: (1) total overhead would increase by 169 and (2) administrative expenses would increase by $129.000 Calculate the combined total det 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? Complete this question by entering your answers in the tabs below, utcome Accept of Should the company compt or reject the offer? thout the concept to the offer? Net Income

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