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Hello, can someone kindly help me with this problem? Farrow Co. expects to sell 400.000 units of its product in the next period with the
Hello, can someone kindly help me with this problem?
Farrow Co. expects to sell 400.000 units of its product in the next period with the following results. Egg, egg age , egg selling xpe see, egg T til units at the pt Sales (aoa,oae u Direct Overhead 36, ege,eeg 1, sga,eeg 1 egg a 428 egg 31,512, egg The company has an opportunity to sell 40.000 additional units at S12 per unit The additional sales would mt 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 wou',d create the following incremental costs: (II total overhead would increase by and (2) administrative expenses would increase by $172000_ Calculate the combined total net income if the company accepts the offerto sell additional units at the reduced price of $12 per unit Should the company accept or reject the offer? Cmplete this by Calculate the total Casts TotI casts e (lass) from if m tabs the offer to 520,oco 520,oco p of $12
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