Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 3.6 pounds of the material, S5 uses 2.5 pounds of the material, and G9 uses 6 pounds of the material. Demand for all products is strong, but only 54,300 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. Selling price Variable costs K1 $156.44 101.00 S5 $100.00 77.00 G91 $199.80 138.00 Calculate the contribution margin per pound for each of the three products. Orders for which product should be produced and filled first, then second, and then third? (Round your answers to 2 decimal places.) Contribution margin per pound Product K1 Product S5 Product G9 Contribution margin per pound Order in which products should be produced and filled: Calla Company produces skateboards that sell for $53 per unit. The company currently has the capacity to produce 100,000 skateboards per year, but is selling 80,700 skateboards per year. Annual costs for 80,700 skateboards follow. Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 944, 190 621,390 952,000 560,000 478,000 $3,555, 580 A new retail store has offered to buy 19,300 of its skateboards for $48 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 80,700 units to 100,000 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 $980 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. 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.) Show less CALLA COMPANY COMPARATIVE INCOME STATEMENTS Normal Volume Additional Volume Combined Total Costs and expenses: 0 0 0 Total costs and expenses Operating income