Farrow Co. expects to sell 500,000 units of its product in the next period with the following results. $7,500,000 Sales (500,000 units) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses ,000,000 2,000,000 500,000 750,000 1,285,000 Total costs and expenses 5,535,000 Net income $1,965,000