Problem 10-1A Analysis of income effects of additional business LO A1 Jones Products manufactures and sells to wholesalers approximately 300 000 packages per year of underwater markers at $3.94 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 384,000 96,000 288,000 120 ,000 80,000 otal costs and expensesS 968,000 A new wholesaler has offered to buy 50,000 packages for $3.39 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 1% times the usual labor rate -30% of the normal annual overhead costs are fixed at any production level from 250,000 to 400,000 units The remaining 70% 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 Required Complete the three-column comparative income staterment 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