1.) Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of underwater markers at $3.86 per package. Annual costs for the production and sale of this quantity are shown in the table.

A new wholesaler has offered to buy 67,000 packages for $3.49 each. These markers would be marketed under the wholesalers name and would not affect Jones Products sales through its normal channels. A study of the costs of this additional business reveals the following:

• Direct materials costs are 100% variable.
• Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require overtime pay at 1 times the usual labor rate.
• 35% of the normal annual overhead costs are fixed at any production level from 350,000 to 500,000 units. The remaining 65% of the annual overhead cost is variable with volume.
• Accepting the new business would involve no additional selling expenses.
• Accepting the new business would increase administrative expenses by a $3,000 fixed amount.

Required: Complete the three-column comparative income statement that shows the following (Round your intermediate calculations and per unit cost answers to 3 decimals)

1. Annual operating income without the special order. 2. Annual operating income received from the new business only. 3. Combined annual operating income from normal business and the new business.

2.) Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 51,000 units of RX5 follows.

Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 51,000 units of RX5 for $19.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5.

3.) Harold Manufacturing produces denim clothing. This year, it produced 5,210 denim jackets at a manufacturing cost of $41.00 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets.

1. Jackets can be sold to a secondhand clothing shop for $7.00 each.
2. Jackets can be disassembled at a cost of $32,600 and sold to a recycler for $11.00 each.
3. Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,210 jackets into only 2,950 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,300, but the jackets can then be sold for their regular price of $45.00 each.

Required: 1. Calculate the incremental income.

I just need whatever boxes are highlighted red! Thanks!

Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 512,000 128,000 384,000 160,000 107,000 $1,291,000 Per Unit Amounts Normal New Volume Business 3.86 $ 0.00 Normal Volume Total New Business Combined Sales $ $ 0 X $ 0 Variable costs: Direct materials 0.000 x 0.000 x 0 X 0 X Direct labor 0.000 X 0.000 X 0 X 0 0 x Variable overhead 0.000 0.000 x 0 0.000 x 0.000 x 0 0 0 Total variable costs 0.000 0.000 0 0 0 Contribution margin 1.111 x 1.111 0 0 0 Fixed costs: Fixed overhead 0 0 Administrative expenses 0 X 0 X 0 Selling expenses 0 X 0 0 0 0 Total fixed costs 0 0 0 Operating income $ 0 x $ 0 X $ 0 Direct materials Direct labor Overhead Total costs per unit $ 4.00 8.00 9.00 21.00 Total incremental costs of: Making the units 0 X $ Buying the units Total direct materials 0 Total direct labor 0 X 0 Variable overhead costs 0 x Cost to buy the units 0 Total costs Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Make the units Alternative 1 Sell to a second-hand shop 0 Alternative 2 Alternative 3 Disassemble Rework and and sell to a sell at regular recycler prices 0 X $ 0 Incremental revenue Incremental costs 0 0 X 0 x Incremental income 0 0 $ 0 Alternative 1