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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 (40e,aee units) 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 (40e,aee units) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Net incon Bee, see 1,600,000 489, see , 1,028,63 4,428, $1.572.330 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 16% and (2) administrative expenses would increase by 5172,000. 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. Accept or Net Income 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 Additional Volume Combined

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