Bain Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpensive calculator. The company's chief accountant recently prepared the following income statement showing annual revenues and expenses associated with the segment's operating activities. The relevant range for the production and sale of the calculators is between 34,000 and 74,000 units per year. Revenue (47,000 units X $11) Unit-level variable costs Materials cost (47,000 $3) Labor cost (47,000 $2) Manufacturing overhead (47,000 $0.30) Shipping and handling (47,000 X 50.25) Sales commissions (47,000 x $2) Contribution margin Fixed expenses Advertising costs Salary of production supervisor Allocated companywide facility-level expenses Net loss $ 517,000 (141,000) (94, 000) (14,100) (11,750) (94,000) 162,150 (31,000) (67,000) (83,000) $(18,850) Required A large discount store has approached the owner of Bain about buying 7000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Bain'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 $5.80 per calculator Calculate the contribution margin from the special order. Based on quantitative factors alone, should Bain accept the special order? 5-1 Rain has an opportunity to buy the 47000 calculators it currently makes from a reliable competing manufacturer for $650 each The product meets Bain's quality standards. Bain could continue to use its own logo, advertising program and sales force to distribute the products. Should Bain buy the calculators or continue to make them? b-2. Calculate the total cost for Bain to make and buy the 47,000 calculators b-3. Should Bain buy the calculators or continue to make them, if the volume of sales were increased to 74,000 units? Because the calculator division is currently operating at a loss, should it be eliminated from the company's operations? Support our answer with appropriate computations. Specifically, by what amount would the segment's elimination increase or decrease profitability? Complete this question by entering your answers in the tabs below. Required A Required Bi Required B2 Required By Required large discount store has approached the owner of Bain about buying 7,000 calculators. It would replace The Math M e . Roy BLUESI I OPUOLICU U UWII U DO. Ouvutwu LOUIS W IEGLC GLE MOC label with its own logo to avoid affecting Bain's existing customers. Because the offer was made directly to the owner, no sale commissions on the transaction would be involved, but the discount store is willing to pay only $5.80 per calculator. Calculate contribution margin from the special order. Based on quantitative factors alone, should Bain accept the special order? b-1. Bain has an opportunity to buy the 47.000 calculators it currently makes from a reliable competing manufacturer for $6.50 eac The product meets Bain's quality standards. Bain could continue to use its own logo, advertising program, and sales force to distribute the products. Should Bain buy the calculators or continue to make them? b-2. Calculate the total cost for Bain to make and buy the 47,000 calculators b-3. Should Bain buy the calculators or continue to make them, if the volume of sales were increased to 74,000 units? c. Because the calculator division is currently operating at a loss, should it be eliminated from the company's operations? Suppor your answer with appropriate computations. Specifically, by what amount would the segment's elimination increase or decreas profitability Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required A large discount store has approached the owner of Bain about buying 7.000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Bain'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 $5.80 per calculator Calculate the contribution margin from the special order. Based on quantitative factors alone, should Bain accept the special order? (Negative amounts should be indicated by a minus sign.) Show less Contribution margin (los) Should Bain accept the special order? Required B1 > o Et a . re to search SAMSUNG a. A large discount store has approached the owner of Bain about buying 7,000 calculators. It would replace The Math label with its own logo to avoid affecting Bain's existing customers. Because the offer was made directly to the owne commissions on the transaction would be involved, but the discount store is willing to pay only $5.80 per calculator contribution margin from the special order. Based on quantitative factors alone, should Bain accept the special order b-1. Bain has an opportunity to buy the 47,000 calculators it currently makes from a reliable competing manufacturer for $ The product meets Bain's quality standards. Bain could continue to use its own logo, advertising program, and sales to distribute the products. Should Bain buy the calculators or continue to make them? b-2. Calculate the total cost for Bain to make and buy the 47.000 calculators. b-3. Should Bain buy the calculators or continue to make them, if the volume of sales were increased to 74,000 units? c. Because the calculator division is currently operating at a loss, should it be eliminated from the company's operations? your answer with appropriate computations. Specifically, by what amount would the segment's elimination increase or profitability? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C Bain has an opportunity to buy the 47,000 calculators it currently makes from a reliable competing manufacturer for $6.50 each. The product meets Bain's quality standards. Bain could continue to use its own logo, advertising program, and sales force to distribute the products. Should Bain buy the calculators or continue to make them? Should Bain buy the calculators or continue to make? -1. Bain has an opportunity to buy the 47,000 calculators it currently makes from a reliable compet The product meets Bain's quality standards. Bain could continue to use its own logo, advertisin distribute the products. Should Bain buy the calculators or continue to make them? -2. Calculate the total cost for Bain to make and buy the 47,000 calculators. -3. Should Bain buy the calculators or continue to make them, if the volume of sales were increased c. Because the calculator division is currently operating at a loss, should it be eliminated from the your answer with appropriate computations. Specifically, by what amount would the segment's e profitability? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required By Required Calculate the total cost for Bain to make and buy the 47,000 calculators. Make Buy Total relevant cost Allocatea companywide facility-Level expenses Net loss (85,000 $ (18,850) Required a. A large discount store has approached the owner of Bain about buying 7,000 calculators. It would replace The Ma label with its own logo to avoid affecting Bain's existing customers. Because the offer was made directly to the ow commissions on the transaction would be involved, but the discount store is willing to pay only $5.80 per calculate contribution margin from the special order. Based on quantitative factors alone, should Bain accept the special or b-1. Bain has an opportunity to buy the 47.000 calculators it currently makes from a reliable competing manufacturer fo The product meets Bain's quality standards. Bain could continue to use its own logo, advertising program, and sale distribute the products. Should Bain buy the calculators or continue to make them? b-2. Calculate the total cost for Bain to make and buy the 47.000 calculators b-3. Should Bain buy the calculators or continue to make them, if the volume of sales were increased to 74,000 units? operating at a loss, should it be eliminated from the company's operation your answer with appropriate computations. Specifically, by what amount wou profitability? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C Should Bain buy the calculators or continue to make them, if the volume of sales were increased to 74,000 units? Should Bain buy the calculators or continue to make? c. Because the calculator division is currently operating at a loss, should it be eliminated from the company's operations? Supp your answer with appropriate computations. Specifically, by what amount would the segment's elimination increase or decre profitability? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C Because the calculator division is currently operating at a loss, should it be eliminated from the company's operations? Support your answer with appropriate computations. Specifically, by what amount would the segment's elimination increase or decrease profitability? (Negative amounts should be indicated by a minus sign.) Contribution to profit (los) Should it be eliminated from the company's operations?
