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Must use excel and answer format follows: 00Would you units, or would you close it? Sup- 6-30A Comprehensive problem including rehensi ve problem in cluding
Must use excel and answer format follows: 00Would you units, or would you close it? Sup- 6-30A Comprehensive problem including rehensi ve problem in cluding special order, outsourcing, an segment elimination decisions tion makes and sells state-of-the-art electronics LO 6-2,6-3.6-4 th Machine, an inexpensive calcul lator. The company's chief accountant recently prepared the CHECK FIGURE products. One of its segments produces income statement showing annual revenue perating 30.000 and 60,000 units per year. s and expenses associated with the segment's ne activities. The relevant range for the production and sale of the calculators is between a cM: $6.000 Revenue (40,000 units $10.80) Unit-level variable costs $432,000 Materials cost (40,000 $2.70) Labor cost (40,000 $1.20) Manufacturing overhead (40,000 $1.20) Shipping and handling (40,000 $0.30) Sales commissions (40,000 $ 1.20) (108,000) (48,000) (48,000) (12000) 48,000) 168,000 Contribution margin Fixed expenses Advertising costs Salary of production supervisor Allocated companywide facility-level expenses (24,000) (72,000) 96,000) $(24,000) Net loss Required (Consider each of the requirements independently) . A l ieplace The Math Machine's label with its own logo to avoid affecting Bain's existing customers ec ause the offer was made directly to the owner, no sales commissions on the transaction would involved, but the discount store is willing to pay only $6.60 per calculator. Based on quantitative actors alone, should Bain accept the special order? Support your answer with appropriate compu- cally, by what amount would the special order increase or decrease profitability? arge discount store has approached the owner of Bain about buying 5,000 calculators. It would tations, Specil
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