Jones Products manufactures and sells to wholesalers approximately 200,000 packages per year of underwater markers at $3.87 per package. Annual costs for the production and sale of this quantity are shown in the table Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $256,000 14,000 192,000 110.000 500 5645,000 A new wholesale has offered to buy 33.000 packages for $350 each. These morkers would be marketed under the wholesalers nome 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 times the usual laborate 25% of the normalan overhead cos are fired at any production level 150.000 to 300.000 units. The remaining 75% of the annual overhed cotis vanable with volume Accepting the new business would involve no additional selling expenses - Accetting the new business would increase administrative expenses by a 55.000 ived amount Homework Savod Total Per Unit Amounts Normal New Business Volume Normal Volume New Business Combined Sales Variable costs Fixed costs Prey 1 of 2 Next