Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of underwater markers at $3.95 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 512,800 128,000 384,000 160, eee 107,eee $1,291,000 A new wholesaler has offered to buy 67,000 packages for $3.44 each. These markers would be marketed under the wholesaler's 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 12 times the usual labor rate. 20% of the normal annual overhead costs are fixed at any production level from 350,000 to 500,000 units. The remaining 80% 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 $3.000 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. 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 Per Unit Amounts Normal New Business Volume Normal Volume usiness Combined Sales Variable costs Fixed costs Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 62,000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 62,000 units of RX5 for $19.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Total incremental costs of: Making the units Buying the units Total costs Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Harold Manufacturing produces denim clothing. This year, it produced 5,170 denim jackets at a manufacturing cost of $41.00 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets. 1. Jackets can be sold to a secondhand clothing shop for $7.00 each. 2 Jackets can be disassembled at a cost of $31.400 and sold to a recycler for $1200 each. 3. Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5.170 jackets into only 2.900 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $101,500, but the jackets can then be sold for their regular price of $41.00 each Required: 1. Calculate the incremental income. Alternative 1 Sell to a second. hand shop Alternative 2 Disassemble and sell to a recycler Alternative 3 Rework and sell at regular prices Incremental revenue Incremental costs Incremental income