Finch 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 70,000 units per year. Revenue (38,000 units x $10.00) $380,000 Unit-level variable costs Materials cost (38,000 x $3.00) (114,000) Labor cost (38,000 x $2.00) (76,000) Manufacturing overhead (38,000 x $0.20) (7,600) Shipping and handling (38,000 x $0.31) (11,780) Sales commissions (38,000 x $1.00) (38,000) Contribution margin Fixed expenses Advertising costs Salary of production supervisor Allocated company-wide facility-level expenses Net loss 132,620 (26,000) (66,000) (79,000) $ (38,380) Required a. A large discount store has approached the owner of Finch about buying 8,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Finch'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 $5.60 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Finch accept the special order? b-1. Finch has an opportunity to buy the 38,000 calculators it currently makes from a reliable competing manufacturer for $6.30 each. The product meets Finch's quality standards. Finch could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Finch to make and buy the 38,000 calculators. b-2. Should Finch buy the calculators or continue to make them? b-3. Should Finch buy the calculators or continue to make them, if the volume of sales were increased to 70,000 units? c. 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? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C A large discount store has approached the owner of Finch about buying 8,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Finch'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 $5.60 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Finch accept the special order? (Negative amounts should be indicated by a minus sign.) Contribution margin (loss) Should Finch accept the special order? Required A Required B1> Show less A Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C Finch has an opportunity to buy the 38,000 calculators it currently makes from a reliable competing manufacturer for $6.30 each. The product meets Finch's quality standards. Finch could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Finch to make and buy the 38,000 calculators. Total relevant cost Make Buy < Required A Required 82 > Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required 83 Required C Should Finch buy the calculators or continue to make them? Should Finch buy the calculators or continue to make them? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C Should Finch buy the calculators or continue to make them, if the volume of sales were increased to 70,000 units? Should Finch buy the calculators or continue to make? 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? 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 (loss) Should it be eliminated from the company's operations