Help Save & Exit Rooney 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 33,000 and 73,000 units per year, $324,000 22 Revenue (36,000 units 59.00) Unit-level variable costs Materials cost 6,000 $2.00) Labor cost (36,000 51.00) Manufacturing overhead (36.000 50.10) Shipping and handling (36,000 > 50.29) Sales Comissions (36.000 12.00) Contribution margin Fixed expenses Advertising costs Salary of production supervisor Allocated company de facility level expenses het loss (72,000) (36.000 (3.600) (10,440) (72.000 129,960 (20,000) (60.000) (50.000 $150,000 Required a. A large discount store has approached the owner of Rooney about buying 8.000 calculators it would replace The Math Machines tabel with its own logo to avoid affecting Rooney'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 40 per calculator Calculate the contribution margin from the special order. Based on quantitative factors alone, should Rooney accept the special order 1.1. Rooney has an opportunity to buy the 36,000 calculators it currently makes from a reliable competing manufacturer for $450 each The product meets Rooney's quality standards Rooney could continue to use its own logo advertising program and sales force to distribute the products Calculate the total cost for Rooney to make and buy the 36 000 calculators b.2. Should Rooney 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 A large discount store has approached the owner of Rooney about buying 8,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Rooney'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 $5.40 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Rooney accept the special order? (negative amounts should be indicated by a minus sign.) Show less Contribution margin (los Should Rooney accept the special order? Required B1 > Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required Rooney has an opportunity to buy the 36,000 calculators it currently makes from a reliable competing manufacturer for 54,50 each. The product meets Rooney's quality standards. Rooney could continue to use its own logo advertising program, and sales force to distribute the products. Calculate the total cost for Rooney to make and buy the 36,000 calculators. Make Buy Total relevant com Complete this question by entering your answers in the tabs below. Required A Required 1 Required 82 Required 83 Required Should Rooney buy the calculators or continue to make them? Should Rooney 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 Should Rooney buy the calculators or continue to make them, if the volume of sales were increased to 73,000 units? Should Rooney buy the calculators or continue to make?
