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finish the rest of it please in the provided chart!!!! Hero 12 Calla Company produces skateboards that sell for $51 per unit. The company currently
finish the rest of it please in the provided chart!!!!
Hero 12 Calla Company produces skateboards that sell for $51 per unit. The company currently has the capacity to produce 90,000 skateboards per year, but is selling 81,100 skateboards per year. Annual costs for 81,100 skateboards follow. 2 points Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 892,100 $32,580 942,000 554,000 474,000 $3,494,680 eBook Print A new retail store has offered to buy 8,900 of its skateboards for $46 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 81,100 units to 90,000 units; the remaining 50% 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 $2.70 per unit selling expense for this order. Administrative expenses would increase by a $880 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? Required 1 Required 2 ook 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.) int Show less CALLA COMPANY COMPARATIVE INCOME STATEMENTS Normal Volume Additional Volume Combined Total $ 4,136,100 $ 409,400 $ 4,545,500 97,900 69,420 Sales Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Total costs and expenses Operating income 892,100 632,580 942,000 554,000 474,000 3,494,680 6.989,360 (2.853,260) $ 990,000 702,000 942.000 554.000 474,880 3,494,680 7.157.560 $ (2.612,060) 880 168.200 241,200 $ Required 2 > Step by Step Solution
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