Chap 23 Homework Seved Calla Company produces skateboards that sell for $58 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 81,400 skateboards per year. Annual costs for 81,400 skateboards follow Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses 5887,260 716,320 948,000 546,000 465,000 $3,562,580 points Skipped Book A new retail store has offered to buy 13.600 of its skateboards for $53 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: Print Deferences Direct materials and direct labor are 100% variable . 30 percent of overhead is fixed at any production level from 81.400 units to 95.000 units; the remaining 70% 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 $2.30 per unit selling expense for this order. Administrative expenses would increase by a $900 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 Calle accept this order? Chap 23 Homework Saved 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: 25 points Skipped 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.) Show less Book CALLA COMPANY COMPARATIVE INCOME STATEMENTS Print References Normal Volume Additional Volume Combined Total Costs and expenses 0 Total costs and expenses Operating income Chap 23 Homework i Saved 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? points Skipped Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Print Should Calla accept this order? References Should Calla accept this order?
