Problem 23-1A Analyzing income effects of additional business LO P7 Jones Products manufactures and sells to wholesalers approximately 200 000 packages per year of underwater markers at $100 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 5256.000 64.00 192,00 30,000 5,000 $645.000 A new wholesaler has offered to buy 33,000 packages for $3 31 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 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 25% of the normal annual overhead costs are fixed at any production level from 150,000 to 300,000 units The remaining 25% of Return to ques 6 name and would not affect Jones Products's sales through its normal channels. A study of the costs of the additional business reveals the following 3 points 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 25% of the normal annual overhead costs are fixed at any production level from 150,000 to 300.000 units. The remaining 75% of . 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, Answer is not complete 6 Per Unit Amount Normal New Volum Business 3.85 XS 3373 Total Normal New Volume Business Combined 770,000 $ 111,210 X $ 881,210 Sales $ 6 Variable costs points Direct materials 1280 256,000 42.240 1.280 0.320 298 240 Direct labor 0480 64.000 15,840 79,840 Variable overhead 0.720 0.720 144,000 23,760 167 760 2320 2.480 464,000 81 840 545,840 306,000 29,370 335,370 Fixed costs Fixed overhead 48.000 Administrative expenses 48.000 53,000 0 5,000 $ 58,000 Selling expenses 80,000 80,000 0 Total fixed costs 5,000 186,000 Operating income 181,000 125,000 $ $ 24,370 $ 149.370