Calla Company produces skateboards that sell for $53 per unit. The company currently has the capacity to produce 95,000 skateboards per year, b skateboards follow ut is selling 81,000 skateboards p er year. Annual costs for 81,000 Direct materials Direct labor Overhead Selling expenses Administrative expenses $ 826,200 680,400 948,000 549,000 465,000 Total costs and expenses $3,468,600 A new retail store has offered to buy 14,000 of its skateboards for $48 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 81,000 units to 95,000 units; the remaining 50% of annual overhead costs are variable with respect to volume expenses are fixed Administrative expenses would increase by a $980 fixed amount. Selling expenses are 80% variable with respect to number of units sold, and the other 20% of selling There will be an additional $1.9 per unit selling expense for this order