Calla Company produces skateboards that sell for $68 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 80,100 skateboards per year. Annual costs for 80,100 skateboards follow.

Direct materials $ 897,120
Direct labor 608,760
Overhead 941,000
Selling expenses 559,000
Administrative expenses 463,000
Total costs and expenses $ 3,468,880

A new retail store has offered to buy 14,900 of its skateboards for $63 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
30 percent of overhead is fixed at any production level from 81,200 units to 90,000 units, the remaining 70% of annual overhead costs are variable with respect to volume
Selling expenses are 60% variable with respect to number of units sold, and the other 40% of selling expenses are fixed ·
There will be an additional $2.70 per unit selling expense for this order
Administrative expenses would increase by a $940 fixed amount.

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