Calla Company produces skateboards that sell for $65 per unit. The company currently has the capacity to produce 90,000 skateboards per year, but is selling 81,500 skateboards per year. Annual costs for 81,500 skateboards follow. Direct materials $ 937,250 Direct labor 643,850 Overhead 947,000 Selling expenses 553,000 Administrative expenses 467,000 Total costs and expenses $ 3,548,100 A new retail store has offered to buy 8,500 of its skateboards for $60 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 81,500 units to 90,000 units; the remaining 60% of annual overhead costs are variable with respect to volume. Selling expenses are 80% variable with respect to number of units sold, and the other 20% 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 $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?