Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of underwater markers at $3.88 per package. Annual costs for the production and sale of this quantity are shown in the table.

Direct materials	$	512,000
Direct labor		128,000
Overhead		384,000
Selling expenses		160,000
Administrative expenses		107,000
Total costs and expenses	$	1,291,000

A new wholesaler has offered to buy 67,000 packages for $3.32 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.
	35% of the normal annual overhead costs are fixed at any production level from 350,000 to 500,000 units. The remaining 65% 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 $2,000 fixed amount.

Required:

Complete the three-column comparative income statement that shows the following (Round your intermediate calculations and per unit cost answers to 2 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.

er Un ounts Total Normal Volume New BusinessNormal Volume New Business Combined Sales 3.88S 332'/ $ 1,552.000./5 222.440. $ $ 1,774.440 1. Variable costs 1.28 85760 597,760 Direct materials Direct labor Variable overhead 1.28 512.000 128.000 384,000X 3.13X Total variable costs 4.41 1.28 1,024,000 85,760 597,760 Contribution margin 528,000 136,680 1,176,680 Fixed costs Fixed overhead Administrative expenses Selling expenses 384,000X 107,000 160.000 384.000 216,000 160,000 109,000X Total fixed costs 651,000 109,000 760,000 Operating income