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 $172,000.calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit.

The manager of a regional warehouse must decide on the number of loading docks to request for a new facility in order to minimize the sum of dock costs and driver-truck costs. the manager has learned that each driver-truck combination represents a cost of $300 per day and that each dock plus loading crew represents a cost of $100 per day. how many docks should be requested if trucks arrive at the rate of three per day on average and each dock can handle five trucks per day on average. arrival of trucks follows a poisson distribution and loading time follows exponential distribution. (hint: in this problem, the average service rate, μ, is directly given to you)