I need help finishing the below problem. I have done what I can but cannot figur

Question

I need help finishing the below problem. I have done what I can but cannot figure out what is wrong or the remaining blanks.

Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of underwater markers at $3.88 per package. Annual costs for the production and sale of this quantity are shown in the table.

A new wholesaler has offered to buy 67,000 packages for $3.32 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:

Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require overtime pay at 1½ times the usual labor rate.

35% of the normal annual overhead costs are fixed at any production level from 350,000 to 500,000 units. The remaining 65% of the annual overhead cost is variable with volume.

Complete the three-column comparative income statement that shows the following (Round your intermediate calculations and per unit cost answers to 2 decimals)

Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of underwater markers at $3.88 per package. Annual costs for the production and sale of this quantity are shown in the table.

Per Unit Amounts otal Normal Volume New BusinessNormal Volume New Business Combined Sales 3.88$ 3.32'/ $ 1.552.000 222.440'/ $ 1,774,440 Variable costs Direct materials Direct labor Variable overhead 512.000 128.000 250.000 890,000 662,000 85760 32,160 42,210X 160,130 62,310 597,760 160.160 292,210X 1,050,130 724,310 0.32 0.48 Total variable costs 2.23 2.39 Contribution margin 1.65 $ Fixed costs Fixed overhead Administrative expenses Selling expenses 134.400 107,000 160.000 134,400 109,000 160,000 2,000 Total fixed costs 401,400 2,000 403,400 Operating income 260,600X 260,600

Explanation / Answer

Details Per Unit Amount Total Combined Normal Volume new Business Normal Volume new Business Sales                         3.88                    3.32         15,52,000.00      2,22,440.00        17,74,440.00 Variabe Cost Direct material                         1.28                    1.28           5,12,000.00          85,760.00          5,97,760.00 Direct Labor                         0.32                    0.48           1,28,000.00          32,160.00          1,60,160.00 Variable Overhead=384000*.65/400000                    0.6240      0.62400000           2,49,600.00          41,808.00          2,91,408.00 Total Variable Cost                    2.2240                2.3840           8,89,600.00      1,59,728.00        10,49,328.00 Contribution Margin                         1.66                    0.94           6,62,400.00          62,712.00          7,25,112.00 Fixed cost: Fixed Overhead           1,34,400.00                         -            1,34,400.00 Administrative Expenses           1,07,000.00            2,000.00          1,09,000.00 Selling Expenses           1,60,000.00                         -            1,60,000.00 Total Fixed cost           4,01,400.00            2,000.00          4,03,400.00 Operating Income           2,61,000.00          60,712.00          3,21,712.00

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