For the problem involving special order analysis and consideration, based on the following numbers:

• the annual income without the special order
• the annual income from the special order
• the combined annual income from the normal business and the new business

Should Calla Company accept the order or not? Why or why not? (Include the related screenshot from Connect supporting your answer to this question.)

For the problem involving make or buy analysis and consideration, explain your answer from the data analysis developed in Connect:

• the total incremental cost of making (manufacturing) the units of RX5;
• the total incremental cost of buying the units of RX5; and
• the dollar amount of the difference between the incremental cost of making and buying the units of RX5.

Should Haver Company make or buy RX5? Why or why not? (Include the related screenshots from Connect supporting your answer.)

For the problem involving sell or process further, explain your answer in detail based upon the data analysis prepared in Connect:

• the incremental income from Alternative 1;
• the incremental income from Alternative 2; and
• the incremental income from Alternative 3.

Which of the 3 alternatives should Harold Manufacturing choose? Ensure that you explain your answer. (Include the related screenshot from Connect supporting your answer to this question.)

CALLA COMPANY COMPARATIVE INCOME STATEMENTS Normal Additional Combined Volume Volume Total Sales $ 5,719,000 $ 864,500 $ 6,583,500 Costs and expenses: Direct materials O 841,510 136,990 V 978,500 Overhead 952,000 108,484 1,060,484 Selling expenses 543,000 90,277 V 633,277 Administrative expenses 469,000 980 V 469,980 Direct labor 612,750 99,750 V 712,500 0 0 Total costs and expenses 3,418,260 436,481 3,854,741 Operating income $ 2,300,740 $ 428,019 $ 2,728,759Determine the total incremental cost of making 66,000 units of R Variable overhead costs a Direct labor 9 Direct materials a 330,000 9 Total incremental cost of making 66,000 units $ 1,055.000 Required 1 Required 2 - Determine the total incremental cost of buying 66,000 units of RXS. Cost per unit to buy 18.00 0 Total incremental cost of buying 66,000 units 1,188,000 a Required: 1. Calculate the incremental income. Incremental revenue 56,540 a $ 132,880 0 Incremental costs 31,900 a 102,500 9 Incremental income 24,640 $ 30,380 The company should choose: Alternative 1