Calla Company produces skateboards that sell for $61 per unit. The company currently has the capacity to produce 90,000 skateboards per year, but is selling 80,600 skateboards per year. Annual costs for 80,600 skateboards follow. Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 862,420 677,040 956,000 547,000 476,000 $3,518,460 A new retail store has offered to buy 9,400 of its skateboards for $56 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. 30 percent of overhead is fixed at any production level from 80,600 units to 90,000 units; the remaining 70% 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 $2.50 per unit selling expense for this order. Administrative expenses would increase by a $950 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: 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.) Sales Costs and expenses: CALLA COMPANY COMPARATIVE INCOME STATEMENTS Normal Volume Additional Volume Combined Total Direct materials 862,420 862,420 Direct labor 677,040 677,040 Overhead 956,000 956,000 Selling expenses 547,000 547,000 Administrative expenses 476,000 476,000 Total costs and expenses 3,518,460 0 3,518,460 Operating income Required 1 Required 2 > Show less