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Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of underwater markers at $3.86 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 $ 512,000 128,000 384,000 160,000 107.000 Total costs and expenses $1,291,000 A new wholesaler has offered to buy 67,000 packages for $3.33 each. These markers would be marketed under the wholesaler's name and would not affect Jones Products' 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 1/2 times the usual labor rate. . 30% of the normal annual overhead costs are fixed at any production level from 350,000 to 500,000 units. The remaining 70% of the annual overhead cost is 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. Answer is not complete. Per Unit Amounts Normal New Volume Business 3.88 $ 3.32 Total Normal New Volume Business $ 1,552,000 $ 222,440 Combined Sales $ > $ 1,774,440 X Variable costs Direct materials Direct labor Variable overhead 1.280 0.320 1.280 0.480 0.624 X 512,000 128,000 249,600 X 85,760 32,160 41,808 X 597,760 160,160 291.408 X 0.624 X 2.224 2.384 889.600 159.728 Total variable costs Contribution margin 1,049,328 725,112 662,400 62,712 134.400 Fixed costs Fixed overhead Administrative expenses Selling expenses 134.400 X 107,000 160.000 0 0 % 0 107,000 160,000 0 401,400 0 401,400 Total fixed costs Operating income ool $ 0X $ 0 X $ 0

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