Calia Company produces skateboards that sell for $59 per unit. The company currently has the capacity to produce 100.000 skateboards per year, but is selling 81,400 skateboards per year. Annual costs for 81,400 skateboards follow Direct materiais Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 18,40 626,780 946,000 55, 465. $3,436,200 A new retail store has offered to buy 18,600 of its skateboards for $54 per unit. The stores in a different market from a 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 40 percent of overhead is fixed at any production level from 81400 unts to 100.000 units, the remaining 60% of annual overhead costs are variable with respect to volume. Selling expenses are 60% variable with respect to number of units sold, and the other 40% otseling expenses are fored There will be an additional $2.90 per unit seling expense for this order Administrative expenses would increase by a $840 fed amount Required: 1. Prepare a three-column comparative income statement that reports the following .. Annual income without the special order, b. Annual income from the special order e. Combined annual income from normal business and the new business. 2. Should Calle accept this order Complete this question by entering your answers in the tabs below. Fetired Required 2 Prepare three column comparative Income statement that reports the following: a. Annual income without the special orders b. Anual income from the special order . Combined annual income from normal business and the new business card your cost and that CALEA COMPANY COMPARATIVE INCOME STATEMENTS Costs and Operating Calla Company produces skateboards that sell for $59 per unit. The company currently has the capacity to produce 100,000 skateboards per year, but is selling 81,400 skateboards per year. Annual costs for 81,400 skateboards follow Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 838,420 626,780 946,000 550,000 465,000 $3,426,200 A new retail store has offered to buy 18,600 of its skateboards for $54 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 40 percent of overhead is fixed at any production level from 81,400 units to 100.000 units the remaining 60% of annual overhead costs are variable with respect to volume Selling expenses are 60% variable with respect to number of units sold, and the other 40% of selling expenses are fixed There will be an additional $2.90 per unit selling expense for this order. Administrative expenses would increase by a $840 fixed amount. Required: 1. Prepare a three column comparative income statement that reports the following: 6. 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 Calla accept this order? Complete this question by entering your answers in the tabs below. Required: Required 2 Should Calla accept this order? Should Calle accept oder?
