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 expenses Administrative expenses Total costs and expenses Net income 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 15% anc (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 $12 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 price of $12 per unit. Normal Mame Additional Cor Net Income Accept or Reject Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit. Normal Volume $ 4,500,000 Additional Volume $ 360,000 Combined Total 4,860,000 600,000 Sales Costs and expenses: Direct materials Direct labor Administrative expenses Overhead Selling expenses Total costs and expenses Incremental income (loss) from new business 1,200,000 771,000 300,000 450,000 3,321,000 1,179,000 600,000 1,200,000 771,000 300,000 450,000 3,321,000 1,539,000 0 360,000 $ $ Accept or Reject >