inexpensive calculator. The company's chlef 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 73,000 units per year. Required 0. A large discount store has approached the owner of Perez about buying 4,000 cakculators. If would replace The Math Machine's label with its own logo to avoid affecting. Perez's existing customers. Because the offer was made diectly to the owmet, no sales commissions on the transaction would be involved, but the discount store is willing to pay only $5.20 per calculator. Calculate the contribution margin from the special ordet. Based on quantitative factors alone, should Perez accept the spechal order? b-1. Perez has on opportunity to buy the 41,000 calculators it currently makes fiom a rellabie competing manufacturer for $14.40 each. The product meets Perez's quality standards. Perez could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Perez to make and buy the 4t,000 calculators. b-2. Should Perez buy the calculators or continue to make them? b-3. Should Perez buy the calculators or continue to make them, if the volume of sales were increased to 72.000 inits? c. Because the calculator division is currently operating at a loss, should it be eliminated from the compariy's operations? Specifically, by what amount would the segment's elimination incicase or deciease profitability? by what amount would the segment's elimination increase or decrease profitability? Complete this question by entering your answers in the tabs below. A large discount store has approached the owner of Perez about buying 4,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting. Perez'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 $5.20 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Perez accept the special order? (Negative amounts should be indicated by a minus sign.) b-1. Perez has an opportunity to buy the 41,000 calculators it currently makes from a reliable The product meets Perez's quality standards. Perez could continue to use its own logo, distribute the products. Calculate the total cost for Perez to make and buy the 41,000ca b-2. Should Perez buy the calculators or continue to make them? b-3. Should Perez buy the calculators or continue to make them, if the volume of sales were c. Because the calculator division is currently operating at a loss. should it be eliminated fre by what amount would the segment's elimination increase or decrease profitability? Complete this question by entering your answers in the tabs below. Perez has an opportunity to buy the 41,000 calculators it durrently makes from a reliable competi each. The product meets Perez's quality standards. Perez could continue to use its own logo, adve force to distribute the products. Calculate the total cost for Perez to make and buy the 41,000cal The product meets Perez's quality standards. Perez could continue to use its own logo, ad distribute the products. Calculate the total cost for Perez to make and buy the 41.000calci b-2. Should Perez buy the calculators or continue to make them? b-3. Should Perez buy the calculators or continue to make them, if the volume of sales were inc c. Because the calculator division is currently operating at a loss, should it be eliminated from by what amount would the segment's elimination increase or decrease profitability? Complete this question by entering your answers in the tabs below. Should Perez buy the calculators or continue to make them? Should Perez buy the calculators or continue to make them? b-1. Perez has an opportunity to buy the 41,000 calculators it currently makes from a reliabl The product meets Perez's quality standards. Perez could continue to use its own logo distribute the products. Calculate the total cost for Perez to make and buy the 41,000c b-2. Should Perez buy the calculators or continue to make them? b-3. Should Perez buy the calculators or continue to make them, if the volume of sales were c. Because the calculator division is currently operating at a loss, should it be eliminated fi by what amount would the segment's elimination increase or decrease profitability? Complete this question by entering your answers in the tabs below. Should Perez buy the calculators or continue to make them, if the volume of sales were increase Should Perez buy the calculators or continue to make? b-3. Should Perez buy the calculators or continue to make them, if the volume of sales were increased to 73,000 units? c. Because the calculator division is currently operating at a loss, should it be eliminated from the company's operations? by what amount would the segment's elimination increase or decrease profitability? Complete this question by entering your answers in the tabs below. 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.)
