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following - Direct materials and direct labor are 100% variable. - Selling expenses are 80% variable with respect to number of units sold, and the
following - Direct materials and direct labor are 100% variable. - 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 $2.90 per unit selling expense for this order. - Administrative expenses would increase by a $840 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? Complete this question by entering your answers in the tabs below. 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.)
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