Problem 23-2A Analysis of income effects of additional business LO P1, A1 Calla Company produces skateboards that sell for $70 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 81,200 skatoboards per year. Annual costs for 81,200 skateboards follow. Direct materials Direct labor Overhead Selling expenses $958,160 617,120 954,000 558,000 469,000 Total costs and expenses $3,556,280 A new retail store has offered to buy 13,800 of its skateboards for $85 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. 40 percent of overhead is fixed at any production level from 81,200 units to 95,000 units; the remaining 60% of annual overhead costs are variable with respect to volume. -Selling expenses are 80% variable with respect to number of units sold, and the other 20% of seling expenses are fixed. There will be an additional $2.4 per unit sell ing expense for this order Administrative expenses would increase by a $850 fixed amount. Required: 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 calculation round your cost and expenses values to nearest whold decimal places.) CALLA COMPANY COMPARATIVE INCOME STATEMENTS Additional Combined Total Normal Volume Volume