Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Jorden Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpensive colculator. The compony's chief sccountant recently prepared
Jorden Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpensive colculator. The compony's chief sccountant recently prepared the following income statement showing annusi revenues and expenses ossociated with the segment's operating octivities. The relevont range for the production and sale of the calculators is between 37,000 and 71,000 units per year. Required a. A large discount store has approsched the owner of Jorden about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to ovoid affecting Jordan's existing customers. Becouse 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. Bosed on quantitative factors alone, should Jordan accept the special order? b.1. Jorden has on opportunity to buy the 38,000 calculators it currently makes from o reliable competing manufocturer for $6.30 esch. The product meets Jorden's quality standards. Jorden could continue to use its own logo, advertising program, and sales force to distribute the products. Colculate the total cost for Jorden to make ond buy the 38,000 calculators. b.2. Should Jordan buy the calculators or continue to make them? b.3. Should Jorden buy the calculators or continue to make them, if the volume of sales were incressed to 71,000 units? c. Becouse the calculator division is currently opersting at a loss, should it be eliminsted from the compony's operations? Specifically, by what amount would the segment's eliminetion incresse or decresse profitability? Complete this question by entering your answers in the tabs below. A large discount store has approached the owner of Jordan about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Jordan'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 Jordan accept the special order? (Negative amounts should be indicated by a minus sign-) Jorden Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpensive calculator. The compeny's chief sccountant recently prepared the following income statement showing annusi revenues and expenses ussociated with the segment's operating activities. The relevant range for the production and sale of the calculators is between 37,000 and 71,000 units per year. Required a. A large discount store has approached the owner of Jorden about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to ovoid sffecting Jordan's existing customers. Becouse the offer was mode directly to the owner, no sales commissions on the transection would be involved, but the discount store is willing to pay only $5.60 per calculator. Calculate the contribution margin from the special order. Bosed on quantitetive factors alone, should Jordan accept the special order? b-1. Jordan has on opportunity to buy the 38,000 calculators it currently makes from a reliable competing manufacturer for $6.30 each. The product meets Jordan's quslity standards. Jorden could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Jordan to make and buy the 38,000 calculators. b.2. Should Jorden buy the calculators or continue to make them? b.3. Should Jorden buy the calculators or continue to make them, if the volume of sales were incressed to 71,000 units? c. Becouse the calculator division is currently operating at a loss, should it be eliminated from the compony's operations? Specifically, by whot amount would the segment's elimination incresse or decresse profitability? Complete this question by entering your answers in the tabs below. Jordan has an opportunity to buy the 38,000 calculators it currently makes from a reliable competing manufacturer for $6.30 each. The product meets Jordan's quality standards. Jordan could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Jordan to make and buy the 38,000 calculators. Jorden Corporstion makes and sells state-of-the-drt electronics products. One of its segments produces The Math Machine, an inexpensive calculator. The compony's chief accountont recently prepared the following income statement showing onnual revenues and expenses ossociated with the segment's operating octivities. The relevont range for the production and sale of the calculators is between 37,000 and 71,000 units per year. Required a. A large discount store has approached the owner of Jorden about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to ovoid affecting Jordan's existing customers. Becouse the offer was made directly to the owner, no sales commissions on the trensaction would be involved, but the discount store is willing to pay only $5.60 per calculator. Calculate the contribution margin from the special order. Bosed on quantitative factors alone, should Jordan accept the special order? b-1. Jorden has on opportunity to buy the 38,000 calculators it currently makes from a reliable competing manufacturer for $6.30 each. The product meets Jordan's quality standards. Jorden could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Jordan to make and buy the 38,000 calculators. b.2. Should Jorden buy the calculators or continue to make them? b.3. Should Jorden buy the calculators or continue to make them, if the volume of sales were incressed to 71,000 units? c. Becouse the calculator division is currently operating ot a loss, should it be eliminated from the compony's operations? Specifically. by what amount would the segment's elimination incresse or decresse profitability? Complete this question by entering your answers in the tabs below. Should Jordan buy the calculators or continue to make them? Jordan Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpensive calculator. The compsny's chief accountont recently prepared the following income statement showing snnusl revenues and expenses associated with the segment's operating activities. The relevant range for the production and sale of the calculators is between 37,000 and 71,000 units per year. Required a. A large discount store has approached the owner of Jorden about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Jordan's existing customers. Becouse the offer was mode directly to the owner, no sales commissions on the transaction would be involved, but the discount store is willing to poy only $5.60 per calculator. Calculate the contribution mergin from the special order. Bosed on quantitative factors alone, should Jordon accept the special order? b-1. Jorden has on opportunity to buy the 38,000 calculators it currently makes from o reliable competing manufacturer for $6.30 each. The product meets Jordon's quslity stendards. Jorden could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Jordan to make and buy the 38,000 calculators. b.2. Should Jordsn buy the calculators or continue to make them? b.3. Should Jorden buy the calculators or continue to meke them, if the volume of ssles were incressed to 71,000 units? c. Becouse the colculator division is currently operating at a loss, should it be eliminated from the compony's operations? Specifically. by whot amount would the segment's elimination incresse or decresse profitability? Complete this question by entering your answers in the tabs below. Should Jordan buy the calculators or continue to make them, if the volume of sales were increased to 71,000 units? Should Jordar buy the caloulators or continue to make? Iorden Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an nexpensive calculator. The company's chief accountent recently prepored the following income statement showing annual revenues and expenses associated with the segment's operating octivities. The relevant range for the production and sale of the celculators is between 37,000 and 71,000 units per year. Required a. A large discount store has approached the owner of Jorden about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to svoid affecting Jordan's existing customers. Becouse the offer was mode directly to the owner, no sales commissions on the transaction would be involved, but the discount store is willing to poy only $5.60 per calculator. Calculate the contribution margin from the special order. Besed on quantitative factors alone, should Jordan accept the special order? 0-1. Jordan has on opportunity to buy the 38,000 calculators it currently makes from o reliable competing manufocturer for $6.30 each. The product meets Jorden's quality stendards. Jorden could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Jordan to make and buy the 38,000 calculators. -2. Should Jordon buy the calculators or continue to make them? -3. Should Jordan buy the calculators or continue to make them, if the volume of sales were incressed to 71,000 units? c. Becouse the calculator division is currently operating at a loss, should it be eliminated from the compony's operations? Specifically, by what amount would the segment's elimination incresse or decresse 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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started