Answered step by step
Verified Expert Solution
Question
1 Approved Answer
all of these please Adams Corporation makes and sells state of the-art elecironics products. One of lis segments produces The Math Machine, an inexpensive calculator.
all of these please
Adams Corporation makes and sells state of the-art elecironics products. One of lis segments produces The Math Machine, an inexpensive calculator. The company's chief accountant fecently prepared the following income statenient showing annual revenues and expenses assoclated witi the segment's operating activitles. The relevant range for the production and sale of the calculators is between 31,000 and 65,000 units per year; Required 0. A large discount store has approached the owner of Adams about buying 7,000 calculators. It would replace The Math Machines's label with its own logo to avold affecting Adams's existing customers. Becouse the offer was made directly to the owner, no sales commissions on the transaction would be involved. but the discount store is wiling to pay only $6.00 per calculator. Caiculate the contribution margin from the special order Based on quantitative factors alone, should Adaris accept the special order? b-1. Adams has an opportunity to buy the 41,000 calculators it currently makes from a reliable competing manufacturer for $6.30 each. The product meets Adams's quality standards. Adams could continue to use its own logo, advertising program, and sales force to distribute the products, Calculate the total cost for Adams to make and buy the 41,000 calculators. b-2. Should Adaris buy the calculators or continue to make them? b-3. Should Adams buy the calculators or continue to make them, if the volume of sales were increased to 65,000 units? c. Because the calculator division is currently operating at a loss, should it be climinated from the company's operations? Specifically, bv what amount would the seament's elimination increase or decreose orofitabilitv? Complete this question by entering your answers in the tabs below. A large discount store has approached the owner of Adams about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to avold affecting Adams's existing customers. Because the offer was made directly to the owner, no sales commissions on the transaction would be involved, but the discount store is willing to pay only $6.00 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Adams accopt the special order? (Negative amounts should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. Adams has an opportunity to buy the 41,000 calculators it currently makes from a relable competing manufacturer for $6.30 each. The product meets Adams's quality standards. Adams could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Adams to make and buy the 41,000 calculators. Complete this question by entering your answers in the tabs below. Should Adams buy the calculators or continue to make them? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Because the calculator division is currently operating at a loss, should it be eliminated from the company's operations? Specifically, by what amount would the segment's elimination increase or decrease profitability? (Negative amounts should be Indicated by a minus sign.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started