Calla Company produces skateboards that sell for $62 per unit The company currently has the capacity to produce 95,000 skateboards per year, but is selling 81,900 skateboards per year Annual costs for 81,900 skateboards follow Direct materials $ 941,850 Direct labor 696,150 Overhead 953,000 Selling expenses 552,000 Administrative expenses 467,000 Total costs and expenses $ 3,610,000 A new retail store has offered to buy 13,100 of its skateboards for $57 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 81,900 units to 95,000 units the remaining 60 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 40 per unit selling expense for this order Administrative expenses would increase by a $960 fixed amount Required 1 Please guide me on how to prepare 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 fComplete 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 Rour your cost and expenses to nearest whole number ) Show less CALLA COMPANY COMPARATIVE INCOME STATEMENTS Normal Volume Additional Volume Combined Total Costs and expenses Total costs and expenses 0 0 0 Operating income

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Calla Company produces skateboards that sell for $62 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling

Calla Company produces skateboards that sell for $62 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 81,900 skateboards per year. Annual costs for 81,900 skateboards follow.

Direct materials $ 941,850 Direct labor 696,150 Overhead 953,000 Selling expenses 552,000 Administrative expenses 467,000 Total costs and expenses $ 3,610,000

A new retail store has offered to buy 13,100 of its skateboards for $57 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 81,900 units to 95,000 units; the remaining 60% 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 $2.40 per unit selling expense for this order.
Administrative expenses would increase by a $960 fixed amount.

Required:

1. Please guide me on how to prepare 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?

\fComplete 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. Rour your cost and expenses to nearest whole number.) Show less CALLA COMPANY COMPARATIVE INCOME STATEMENTS Normal Volume Additional Volume Combined Total Costs and expenses: Total costs and expenses 0 0 0 Operating income