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Calla Company produces skateboards that sell for $53 per unit. The company currently has the capacity to produce 100,000 skateboards per year, but is selling

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Calla Company produces skateboards that sell for $53 per unit. The company currently has the capacity to produce 100,000 skateboards per year, but is selling 80,100 skateboards per year. Annual costs for 80,100 skateboards follow. Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 873, 890 576, 720 957,000 545,000 472.000 $3,423,810 A new retail store has offered to buy 19,900 of its skateboards for $48 per unit. The store is in a different market from Calle'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 80,100 units to 100,000 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 $1.60 per unit selling expense for this order. Administrative expenses would increase by a $990 fixed amount 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 Additional Normal Volume Volume Combined Total we Next > in of 18 Here LOWWW Selling expenses are 70% variable with respect to number of units sold, and the other 30% of sing expenses are fred There will be an additional $160 per unit selling expense for this order Administrative expenses would increase by a $990 fixed amount. 10 10 points 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 Additional Normal Volume Volume Combined Total Costs and expenses Total costs and expenses Operating income

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