please answer
omework Saved Calla Company produces skateboards that sell for $62 per unit. The company currently has the capacity to produce 100,000 skateboards per year, but is selling 81100 skateboards per year. Annual costs for 81,100 skateboards follow. Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 883,990 738,010 940,000 552,000 460,000 $3,574,000 A new retail store has offered to buy 18,900 of its skateboards for $57 per unit. The store is in a different market from Calla's regular 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 81,100 units to 100,000 units; the remaining 50% of annual overhead costs are variable with respect to volume. Selling expenses are 70% variable with respect to number of units sold, and the other 30% of selling expenses are fixed. There will be an additional $2.00 per unit selling expense for this order. Administrative expenses would increase by a $950 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 accept this order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 w Prey 2. Should Calla accept this order? 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 calculations. Round your cost and expenses to nearest whole number) Show less CALLA COMPANY COMPARATIVE INCOME STATEMENTS Normal Volume Additional Volume Combined Total Costs and expenses Total costs and expenses Operating income 0 Het Required 2 > costs are variable with respect . Selling expenses are 70% variable with respect to number of units sold, and the other 30% of selling expense There will be an additional $2.00 per unit selling expense for this order. Administrative expenses would increase by a $950 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 Calle accept this order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should Calla accept this order? Should Calla accept this order?
