Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. $4,500,eee Sales (380,eee units) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Net income 6ee, eee 1,2ee, ee 3ea, eae 450,000 771, eae 3,321, eae $1,179,800 The company has an opportunity to sell 30.000 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 $129.000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit. Should the company accept or reject the offer? Complete this question by entering your answers in the tabs below. Net Income Accept or Reject Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced per unit. Normal Volume Additional Volume Combined Total 0 Costs and expenses: 0 0 0 0 0 0 0 Total costs and expenses Incremental income (loss) from new business 0 0 S s 0 0 Net Income Accept or Reject A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 45% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? $ 260,000 152,eee Sales Variable costs Fixed costs Direct Indirect Operating loss 34,000 57,080 $ (17,600) 1-a. Compare the amounts of total revenues and total avoidable expenses. 1-b. Based on this information, should the division be eliminated? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Compare the amounts of total revenues and total avoidable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by Required 1A Required 1B >