Jones Products manufactures and sells to wholesalers approximately 200,000 packages per year of underwater markers at $3 92 per package Annual costs for the production and sale of this quantity are shown in the table Direct materials $ 256,000 Direct labor 64,000 Overhead 192,000 Selling expenses 80,000 Administrative expenses 53,000 Total costs and expenses $ 645,000 A new wholesaler has offered to buy 33,000 packages for $3 46 each These markers would be marketed under the wholesalers name and would not affect Jones Products sales through its normal channels A study of the costs of this additional business reveals the following Direct materials costs are 100 variable Per unit direct labor costs for the additional units would be 50 higher than normal because their production would require overtime pay at 1 times the usual labor rate 25 of the normal annual overhead costs are fixed at any production level from 150,000 to 300,000 units The remaining 75 of the annual overhead cost is variable with volume Accepting the new business would involve no additional selling expenses Accepting the new business would increase administrative expenses by a $4,000 fixed amount Required Complete the three column comparative income statement that shows the following (Round your intermediate calculations and per unit cost answers to 3 decimals) 1 Annual operating income without the special order 2 Annual operating income received from the new business only 3 Combined annual operating income from normal business and the new business 25 of the normal annual overhead costs are tod at ar y procution le dironn 150000 to 300000 m the annual overhead cost is vartable with volume Accepting the new bushes would move no adronal selg expenses Accepang the new buisiness would Increase adninistrative expenses by a S4 000 fixed amourt Required Complete the three column comparatve Income statement that shows the following (Round your intermed unit cost answers to 3 declmab) 1 Annua 2 Annual operating Income received from the new business only 3 Combined annual oporating Income from normal business and the new business Income wthout the spedal order New Sales Variable costs 0 000 Foed costs

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Jones Products manufactures and sells to wholesalers approximately 200,000 packages per year of underwater markers at $3.92 per package. Annual costs for the production and

Jones Products manufactures and sells to wholesalers approximately 200,000 packages per year of underwater markers at $3.92 per package. Annual costs for the production and sale of this quantity are shown in the table.


Direct materials	$	256,000
Direct labor		64,000
Overhead		192,000
Selling expenses		80,000
Administrative expenses		53,000
Total costs and expenses	$	645,000

A new wholesaler has offered to buy 33,000 packages for $3.46 each. These markers would be marketed under the wholesalers name and would not affect Jones Products sales through its normal channels. A study of the costs of this additional business reveals the following:

Direct materials costs are 100% variable.
Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require overtime pay at 1 times the usual labor rate.
25% of the normal annual overhead costs are fixed at any production level from 150,000 to 300,000 units. The remaining 75% of the annual overhead cost is variable with volume.
Accepting the new business would involve no additional selling expenses.
Accepting the new business would increase administrative expenses by a $4,000 fixed amount.

Required: Complete the three-column comparative income statement that shows the following (Round your intermediate calculations and per unit cost answers to 3 decimals)

1. Annual operating income without the special order. 2. Annual operating income received from the new business only. 3. Combined annual operating income from normal business and the new business.

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25% of the normal annual overhead costs are tod at ar y procution le dironn 150000 to 300000 m. the annual overhead cost is vartable with volume Accepting the new bushes would move no adronal selg expenses. . Accepang the new buisiness would Increase adninistrative expenses by a S4.000 fixed amourt. Required Complete the three-column comparatve Income statement that shows the following (Round your intermed unit cost answers to 3 declmab) 1 Annua 2. Annual operating Income received from the new business only 3 Combined annual oporating Income from normal business and the new business Income wthout the spedal order New Sales Variable costs 0.000 Foed costs