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Plz first check my answers and do the rest plz 0 Problem 25-4A Analysis of income effects of additional business LO A1 Jones Products manufactures
Plz first check my answers and do the rest plz
0 Problem 25-4A Analysis of income effects of additional business LO A1 Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of underwater markers at $6 per package. Annual costs for the production and sale of this quantity are shown in the table 3 points Direct materials Direct labor Overhead Selling expensers Administrative expenses Total costs and expenses 576,000 144,000 320,000 50,000 100,000 $1,290,000 eBook Print A new wholesaler has offered to buy 50,000 packages for $5.20 each. These markers would be marketed under the wholesaler's name and would not affect Jones Products's sales through its normal channels. A study of the costs of this additional business Referencesreveals 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 Twenty-five percent of the normal annual overhead costs are fixed at any production level from 350,000 to 500,000 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 $5,000 fixed amount * . Required: Complete the three-column comparative income statement that shows the following. (Do not round intermediate calculations and round per unit cost answers to 2 decimal places.) . 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 businessStep by Step Solution
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