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10 Calla Company produces skateboards that sell for $57 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is

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10 Calla Company produces skateboards that sell for $57 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 81100 skateboards per year. Annual costs for 81100 skateboards follow $ Direct wuterials Direct labor Overhead Selling expenses Adeinistrative expenses Total costs and expenses 592.100 681,240 950.000 549.000 $3,537, A new retail store has offered to buy 13.900 of its skateboards for $52 per unit. The store is in a different market from Calla's regular customers and would not affect regular sales. A study of its costs in anticipation of this additional business reveals the following Direct materials and direct labor are 100% variable 50 percent of overhead is fixed at any production level from 81.00 units to 95,000 units the remaining 50% of annual overhead costs are variable with respect to volume Selling expenses are 70% variable with respect to number of units sold and the other 30% of selling expenses are fixed . There will be an additional 5160 per unit selling expense for the order Administrative expenses would increase by a $960 fred amount Required: Prepare a tvee-column comparative income statement that reports the following Required: Prepare a three-column comparative income statement that reports the following a. Annual income without the special order b. Annual income from the special order. c. Combined annual income from normal business and the new business. (Do not round your intermediate calculations. Round your cost and expenses to nearest whole number.) CALLA COMPANY COMPARATIVE INCOME STATEMENTS Normal Volume Additional Volume Combined To Costs and expenses Total costs and expenses Operating income

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