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Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate comple

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Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate comple Jones Products manufactures and sells to wholesalers approximately 100,000 packages per year of underwater markers at $3.93 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 $128,000 32,000 96,000 40,000 27,000 $323,000 A new wholesaler has offered to buy 17,000 packages for $3.36 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 1/2 times the usual labor rate. 30% of the normal annual overhead costs are fixed at any production level from 50,000 to 200.000 units. The remaining 70% of the annual overhead costs are variable with volume. Accepting the new business would involve no additional selling expenses. Accepting the new business would increase administrative expenses by a $2.000 fixed amount. . Required: > Direct labor 0.320 0.480 0.624 X 512,000 128,000 X 249,600 X 85,760 32,160 41,808 597,760 X 160,160 291,408 % % % Variable overhead 0.624 X Total variable costs 2.224 2.384 889,600 662,400 159,728 62,712 1,049,328 725 112 Contribution margin Fixed costs Fixed overhead Selling expenses Administrative expenses colo 134,400 x 160,000 107,000 $ 134,400 160,000 109,000 2,000 0 Total fixed costs 2,000 401,400 261,000 $ 403,400 321,712 Operating income S 60,712 $

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