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Calla Company produces skateboards that sell for $51 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 81,100 skateboards per year. Annual costs for 81,100 skateboards follow.

Direct materials	$	908,320
Direct labor		583,920
Overhead		947,000
Selling expenses		545,000
Administrative expenses		462,000
Total costs and expenses	$	3,446,240

A new retail store has offered to buy 13,900 of its skateboards for $46 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 81,100 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 selling expenses are fixed.
		There will be an additional $1.1 per unit selling expense for this order.
		Administrative expenses would increase by a $870 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.

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