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if its possible, can someone please go over the steps Check my we Calla Company produces skateboards that sell for $69 per unit. The company

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if its possible, can someone please go over the steps
Check my we Calla Company produces skateboards that sell for $69 per unit. The company currently has the capacity to produce 100,000 skateboards per year, but is selling 81,700 skateboards per year. Annual costs for 81,700 skateboards follow. Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 923,10 596,410 950,000 548,000 463,000 $3,480,620 bok ences A new retail store has offered to buy 18,300 of its skateboards for $64 per unit. The store is in a different market from Calla's regula 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 81.700 units to 100,000 units; the remaining 50% of annual overhea costs are variable with respect to volume. Selling expenses are 60% variable with respect to number of units sold, and the other 40% of selling expenses are fixed. There will be an additional $2.60 per unit selling expense for this order. Administrative expenses would increase by a $940 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 arront thic arlor? Prev 1 of 3 Next > 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: 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 calc your cost and expenses to nearest whole number.) CALLA COMPANY COMPARATIVE INCOME STATEMENTS Additional Normal Volumo Volume Combined Total Sales Costs and expenses: Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Operating income 0 0

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