Calla Company produces skateboards that sell for $64 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 80,700 skateboards per year. Annual costs for 80,700 skateboards follow.
|Total costs and expenses||$||3,537,580|
A new retail store has offered to buy 14,300 of its skateboards for $59 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:
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 calculations. Round your cost and expenses to nearest whole number.)
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