hw 13 question 6

Rundie Corporation makes and sells state-of the-art electronics poducts. One of its segments produces The Math Machine, an inexpenswe calculator. The company's chief occountant recently prepared the following income statement showng annual revenues and expenses associated with the segment's operating activities. The relevant range for the production and sale of the calculators is between 32,000 and 72,000 units per year: Requilred A. A Large discount store has approached the owner of Rundle about buyng 6,000 calculators it would replace The Math Machine's ibet with is own logo to void affecting Rundles exsting customers. Bocause the offer was made directiy to the ownec, no sales commissions on the transfiction would be involved, but the discount store is wiling to pay ony $70 per calculatoc Cakculate the contribution margin from the special order. Based on quanthative factors alone, should Pundle accept the speciaf order? b-1. Rundle has an opportunity to buy the 35000 calculators it currently makes from a relable competing manufacturer for $6.40 each. The product meets Rundie's quality standards. Rundle could continue to use its own logo, advertising program, and sales force to dstribute the products. Calculate the fotai cost for Rundle to make and buy the 35,000 calculators. b. 2 . Should Rundle buy the calculators or continue to make them? b.3. Should Rundie buy the calculators or continue to make them, it the volume of sales were increased to 72.000 unts? c. Because the calculator division is cunently operating it a loss, shouid it be eliminated from the compary's operations? support your answer with appropriate computations. Specifcally, by what amount would the segment's elimination increase or decrease proftatility? Complete this question by entering your answers in the tabs below. label with its own logo to avoid affecting Rundle's existing customers. Because the offer was made directly to the owner, no sales commissions on the transaction would be imvolved, but the discount store is willing to pay only $5.70 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Rundie accept the special order? b-1. Rundie has an opportunity to buy the 35,000 calculators it currently makes from a reliable competing manufacturer for $6.40 each. The product meets. Rundle's quality standards. Rundle could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Rundle to make and buy the 35,000 calculators. b-2. Should Rundle buy the calculators or continue to make them? b-3. Should Rundle buy the calculators or continue to make them, if the volume of sales were increased to 72,000 units? 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 profitabulty? Complete this question by entering your answers in the tabs below. A large discount store has approached the owner of Rundle about buying 6,000 calculators. It would reptace The Math Machine's label with its own logo to avoid affecting Rundle'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. 70 per calculatoc. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Rundle accept the special order? Note: Negative amount shocild be indicated by a minus sign. Required a. A large discount store has approached the owner of Rundle about buying 6,000 calculators. It would replace The Math Mochine's label with its own logo to avoid affecting Rundle's existing customers. Because the offer was made directly to the owner, no sales commissions on the transaction would be imvolved, but the discount store is wiling to pay only $570 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Rundle accept the 5pecial order? b-1. Rundie has an opportunity to buy the 35,000 calculators it currently makes from a relieble competing manufacturer for $6.40 each. The product meets Rundle's quality standards. Rundle could continue to use its own logo, advertising program, and sales force to distribute the products, Colculate the total cost for Rundle to make and buy the 35,000 calculators. b-2. Should Rundle boy the calculators or continue to make them? b-3. Should Rundle buy the calculators or continue to make them, if the volume of sales were increased to 72,000 units? c. Because the calculator division is curtently 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? Complete this question by entering your answers in the tabs below. Rundie has an opportunity to buy the 35,000 calculators it currentiy makes from a reliable competing manufacturer for $6.40 each. The product meets. Rundle's quality standards. Rundle could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Rundle to make and buy the 35,000 calculators. Required a. A large discount store has approached the owner of Rundle about buying 6,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Rundle'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 $5.70 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Rundle accept the special order? b-1. Rundle has an opportunity to buy the 35.000 calculators it currently makes from a reliable competing manufacturer for $6.40 each. The product meets Rundle's quality standards. Rundle could continue to use its own logo, advertising program, and sales force. to distribute the products. Calculate the total cost for Rundle to make and buy the 35,000 calculators. b-2. Should Rundle buy the calculators or continue to make them? b-3. Should Rundle buy the calculators or continue to make them, if the volume of sales were increased to 72.000 units? 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 protitability? Complete this question by entering your answers in the tabs below. Should Rundie buy the calculators or continue to make them? Required a. A large discount store has approached the owner of Rundle about buying 6,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Rundie's existing customers. Because the offer was made directly to the owrier, no sales commissions on the transaction would be involved, but the discount store is willing to pay only $5.70 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Rundle accept the 5pecial order? b-1. Rundie has an opportunity to buy the 35,000 calculators it currently makes from a reliable competing manufacturer for 5640 each. The product meets Rundle's quality standards. Rundle could continue to use its owm logo, advertising program, and sales force to distribute the products. Calculate the total cost for Rundie to make and buy the 35,000 calculators b-2. Should Rundle bury the calculators or continue to make them? b-3. Should Rundle buy the calculators or continue to make them, if the volume of sales were increased to 72.000 units? c. Because the calculator division is currently operating at a loss, should it be eliminated from the compary's operations? Support your answer with appropriate computations. Specifically, by what amount would the segmont's elimination increase or dectease profitability? Complete this question by entering your answers in the tabs below. Should Rundle buy the calculators or continue to make them, if the volume of sales wore increased to 72,000 units? - Inbel with its own logo to avoid affecting Rundle's existing customers Because the offer was made directly to the ownet, no sales commissions on the transaction would be involved, but the discount store is willing to pay only $570 per calculator. Calculate the contribution maig in from the special ordec Based on quantative factors alone, should Rundife accept the special order? b-1. Rundie has an opportunity to buy the 35,000 calculators it currently makes from di reliable competing manufacturer for $6.40. each. The product meets Rundle's qualify standards. Rundle could continue to use its own logo, advertising program, and sales force to distribute the products: Calculate the fotal cost for Rundle to make and buy the 35,000 calculators. b-2. Should Rundle buy the calculators or continue to make them? b-3. Should Rundle buy the calculators or continue to make them, if the volume of sales were increased to 72 , o00 units? c. Because the calculator division is curtently operating at a loss, should it be eliminated from the compary's operations? Support your answer wah appropriate computations. Specificaly, by what amount woukt the segment's elimination increase or decrease protitability? Complete this question by entering your answers in the tabs below. Becaute the calculator divisbon is currentiy operating at a loss, sheuld it be eiminated from the comparys operations? or decrease profitability? Note: Nirgative amount should be indicated by s minus ubn