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Jones Products manufactures and sells to wholesalers approximately 100,000 packages per year of underwater markers at $4.00 per package. Annual costs for the production and sale of this quantity are shown in the table. Direct materials $ 128,000 Direct labor 32,000 Overhead 96,000 Selling expenses 40,000 Administrative expenses 27,000 Total costs and expenses $ 323,000 A new wholesaler has offered to buy 17,000 packages for $3.36 each. These markers would be marketed under the wholesalers name and would not affect Jones Productss 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 times the usual labor rate. 30% of the normal annual overhead costs are fixed at any production level from 50,000 to 200,000 units. The remaining 70% 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 $2,000 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.

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