Problem 23-1A Analyzing income effects of additional business LO P7 Jones Products manufactures and sells to wholesalers approximately 100,000 packages per year of underwater markers at $3

Problem 23-1A Analyzing income effects of additional business LO P7 Jones Products manufactures and sells to wholesalers approximately 100,000 packages per year of underwater markers at $3.80 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 $3.40 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 13 times the usual labor rate, • 25% of the normal annual overhead costs are fixed at any production level from 50,000 to 200,000 units. The remaining 75% 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 $5.000 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 Total Per Unit Amounts Normal Volume Now Business Normal Volume New Business Combined Sales Ich
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 $5,000 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 Total Par Unit Amounts Normal New Business Volume Normal Volume New Business Combined Sales Variable costs 0.