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Farrow Co. expects to sell 400,000 units of its product in the next period with the following results $6,000,000 Sales (400,000 unite) Costs and expenses

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Farrow Co. expects to sell 400,000 units of its product in the next period with the following results $6,000,000 Sales (400,000 unite) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Net income 800,000 1,600,000 400,000 600,000 1,028,000 4,428,000 $1,572,000 The company has an opportunity to sell 40,000 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% and (2) administrative expenses would increase by $172,000 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. Nettcome Acceptor 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 Complete this question by entering your answers in the tabs below. Net Income Accept or Reject Calculate the combined total niet Income if the company accepts the offer to sell additional units at the reduced price of $12 per unit. Normal Volume Additional Volume Combined Total 0 Costs and expenses 0 0 0 0 0 Total costs and expenses Incremental incomo (loss) from new business 0 0 $ 0 0 0 0 The ICON Accept or Reject> Complete this question by entering your answers in the tabs below. Accept of Net Income Reject Should the company accept or reject the offer? Should the company accept or reject the offer?

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