Calla company produces skateboards that sell for $67 per unit. The company currently has the capacity to produce...

Calla Company produces skateboards that sell for $67 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 81,500 skateboards per year. Annual costs for 81,500 skateboards follow. 920,950 Direct materials 660,150 Direct labor Overhead 956.000 549,000 Selling expenses 466,000 Administrative expenses Total costs and expenses $3,552,100 A new retail store has offered to buy 13,500 of its skateboards for $62 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 81,500 units to 95,000 units, the remaining 50% of annual overhead costs are variable with respect to volume r 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 $1.1 per unit selling expense for this order Administrative expenses would increase by a $970 fixed amount