Calla Company produces skateboards that sell for $64 per unit.
The company currently has the capacity to produce 100,000
skateboards per year, but is selling 80,200 skateboards per year.
Annual costs for 80,200 skateboards follow. Direct materials $
930,320 Direct labor 729,820 Overhead 949,000 Selling expenses
543,000 Administrative expenses 462,000 Total costs and expenses $
3,614,140 A new retail store has offered to buy 19,800 of its
skateboards for $59 per unit. The store is in a different market
from...