Question: Please answer question correctly, will give thumbs up and a good view!! Thank you!! 5 Exercise 23-13 Accept new business or not LO P7 Farrow


Please answer question correctly, will give thumbs up and a good view!! Thank you!!
5 Exercise 23-13 Accept new business or not LO P7 Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. 6 points $4,500,000 eBook Hint Sales (300,000 units) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Net income Print 600,000 1,200,000 300,000 450,000 771,000 3,321,000 $1,179,000 The company has an opportunity to sell 30,000 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 15% and (2) administrative expenses would increase by $129,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit. Should the company accept or reject the offer? Complete this question by entering your answers in the tabs below. Net Income Accept or Reject 5 administrative expenses would increase by Di29,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit. Should the company accept or reject the offer? 6 points Complete this question by entering your answers in the tabs below. eBook Net Income Accept or Reject Hint Print Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit. Normal Volume Additional Volume Combined Total 0 Costs and expenses: 0 0 0 0 0 0 0 Total costs and expenses Incremental income (loss) from new business 0 0 S 0 $ 0 Net Income Accept or Reject> Chapter 23 Homework i Saved Hel 5 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 $129,000. 6 points Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit. Should the company accept or reject the offer? Complete this question by entering your answers in the tabs below. eBook Hint Net Income Accept or Reject Print Should the company accept or reject the offer? Should the company accept or reject the offer?
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