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Someone please fill boxes out explanations not helping 1.10,.00 points value: Jones Products manufactures and sells to wholesalers approximately 200,000 packages per year of underwater
Someone please fill boxes out explanations not helping
1.10,.00 points value: Jones Products manufactures and sells to wholesalers approximately 200,000 packages per year of underwater markers at $3.97 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 $ 256,000 64,000 192,000 80,000 53,000 Total costs and expenses $ 645,000 A new wholesaler has offered to buy 33,000 packages for $3.38 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 1/2 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 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 by a $4,000 fixed amount. Required Complete the three-column comparative income statement that shows the following (Round your intermediate calculations and per unit cost answers to 3 decimals) Required Complete the three-column comparative income statement that shows the following (Round your intermediate calculations and per unit cost answers to 3 decimals) 1. Annual operating income without the special order 2. Annual operating income received from the new business only 3. Combined annual operating income from normal business and the new business Total Per Unit Amounts Normal Volume Normal Volume New Business New Business Combined Sales 3.97$ 3.38768,000 $ 112,860 $ 880,860 Variable costs Direct materials Direct labor Variable overhead 1.280 0.320 0.770 1.280 0.480 0.770 256,000 64,000 153,600 42,240 15,840 25,344 298,240 79,840 178,944 83,424 29,436 Total variable costs 2.370 2.530 473,600 557,024 Contribution margin 1.470 $ 0.890 294,400 323,836 Fixed costs 0Step by Step Solution
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