Calla Company produces skateboards that sell for $50 per unit. The company currently has the capacity to produce 90,000 skateboards per year, but is selling 80,000 skateboards per year. Annual costs for 30,000 skateboards follow. Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 800,000 640,000 900,000 560,000 480,000 $3, 440,000 A new retail store has offered to buy 10,000 of its skateboards for $45 per unit. The store is in a different market from Calio's regular customers and would not affect regular soles. A study of its costs in anticipation of this additional business reveals the following: Direct materials and direct labor are 100% variable Thirty percent of overhead is twed at any production level from 80,000 units to 90,000 units, the remaining 70% 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 per unit selling expense for this order, Administrative expenses would increase by a $1.000 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 Calla accept this order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a three-column comparative income statement that reports the following: 2. Annual income without the special order. b. Annual income from the special order. c. Combined annual income from normal business and the new business, Show less CALLA COMPANY COMPARATIVE INCOME STATEMENTS (a) Normal (b) Additional (C) Combined Volume Volume Total c. Combined annual income from normal business and the new business. Show less CALLA COMPANY COMPARATIVE INCOME STATEMENTS (a) Normal (b) Additional (C) Combined Volume Volume Total Costs and expenses Total costs and expenses Operating income Required 2 >