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Generalware, Inc. sells a single product and reports the following per unit information from sales of 100,000 units:

		Per Unit
Sales	$	45.00
Costs & expenses
Direct materials		16.00
Direct labor		9.00
Variable overhead		3.00
Fixed overhead		8.10
Variable administrative		4.50
Fixed administrative		4.00

Normal capacity for Generalware is 125,000 units. A foreign company wants to purchase 15,000 units. However, they are willing to pay only $36 per unit for this one-time order. They also agree to pay all freight costs. To fill the order, Generalware will incur normal production costs. Total fixed overhead will have to be increased by $60,000 to pay for equipment rentals and insurance. No additional administrative costs (variable or fixed) will be incurred in association with this special order.

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.

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 GENERALWARE INC. COMPARATIVE INCOME STATEMENTS Normal Volume Additional Volume Combined Total Costs and expenses Direct labor Direct materials Fixed administrative Fixed overhead 0 0 0

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