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Fanning Corporation makes and sets state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpensive calculator. The company's chief accountant recently prepared

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Fanning Corporation makes and sets 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 33.000 and 69,000 units per year 57. Revenue (7,units $10. ) Unit-level wale costs Materials cost (37,000 $2.00) Labor cost ( 1 0 ) Manufacturing overhead (7. 10 Shipping and handling (17,00 Sales ons (57. 52.00) Contribution (70.00) (24 ) (11,100) (111) ) ) Advertising costs 65. ) Allocated company wide facility-level este los Required .. A large discount store has approached the owner of Fanning about buying 7000 calculators, it would replace The Moth Machine's Isbel with its own logo 10 vold aflecting Fannings existing customers. Because the offer was made directly to the owner, no sales Commons on the transaction would be involved, but the discount store is wing to pay only 5510 per calcio Calculate the contribution margin from the special order. Based on quantive factors alone, should Fanning accept the special order? -1. Fanning has an opportunity to buy the 37000 calculatorit cumenty makes toma t e compong manufacturer for $5.60 each The product meets Fangsualny standards, Fanning could continue to use its own logo, advertising program and sales force to distribute the products Calculate the total cost for Fanning to make and buy the 37000 calculators 2. Should Forng buy the calculators of continue to make them 3. Should Fanning buy the customs or continue to make them the volume of als were increased to 69,000 units c. Because the color vion is currently operating at a loss should it be liminated from the company's operations Support your answer with propriate computations specifically, by what amount would the segments on increase or decrease proy Red Algere has posted the b a ce The Man Machete g er. Berthollerade directly to the en co u ld be involved, but the discount starting to calculator Calculate the contribut or the special de Bases factors on the c h osendicated bygn)

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