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Problem 23-1A Analysis of income effects of additional business LO A1 Jones Products manufactures and sells to underwater markers at $3.91 per package. Annual costs
Problem 23-1A Analysis of income effects of additional business LO A1 Jones Products manufactures and sells to underwater markers at $3.91 per package. Annual costs for the production and sale of this quantity are shown in the table. $ 640,000 160,000 480,000 200,000 133,000 Total costs and expenses $1,613,000 A new wholesaler has offered to buy 83,000 packages for $3.33 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 Per unit direct labor costs for the additional units would be 50% higher than normal because their would require overtime pay at 1 times the usual labor rate. 35% of the normal annual costs are ixed at any production level from 450,000 to 600,000 units. The remaining 65% of the annual . Accepting the new business would involve no additional selling expenses. . Accepting the new business would increase administrative expenses by a $5,000 fixed amount. d cost is variable with volume. Required: Complete the three-column intermediate calculations and per unit cost answers to 3 decimals) 1. Annual operating income without the special ord
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