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Feist Co. expects to sell 200,000 units of its product in the next period with the following results. $ 3,000,000 Sales (200,000 units) Costs and

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Feist Co. expects to sell 200,000 units of its product in the next period with the following results. $ 3,000,000 Sales (200,000 units) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses (400,000) 800,000) (200,000) (300,000) (514,000) Total costs and expenses (2,214,000) Net profit $ 786,000 The company has an opportunity to sell 20,000 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 16% and (2) administrative expenses would increase by $86,000

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