Calia Company produces skateboards that sell for $57 per unit. The company currently has the capacity to produce 90,000 skateboards per year, but is selling 80,300 skateboards per year Annual costs for 80,300 skateboards follow. Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 899, 360 594,220 953,000 560,000 478,000 $3,484,580 A new retail store has offered to buy 9700 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 80,300 units to 90.000 units; the remaining 50% of annual overhead costs are variable with respect to volume Selling expenses are 80% variable with respect to number of units sold, and the other 20% of selling expenses are fixed There will be an additional $250 per unit Selling expense for this order Administrative expenses would increase by a $920 fixed amount Required: 1. Prepare a three-column comparative income statement that reports the following A new retail store has offered to buy 9700 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 80,300 units to 90.000 units, the remaining 50% of annual overhead costs are variable with respect to volume Selling expenses are 80% variable with respect to number of units sold, and the other 20% of selling expenses are fixed . There will be an additional $2.50 per unit selling expense for this order Administrative expenses would increase by a $920 fixed amount Required: 1. 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, 2. Should Calia accept this order? 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.) Show less CALLA COMPANY COMPARATIVE INCOME STATEMENTS Normal Volume Additional Volume Combined Total Sales Costs expenses Direct materials Direct labor Overhead Seling expenses Administrative expenses 0 0 Total costs and expenses Operating income