Problem 13-28A (Algo) Comprehensive problem including special order, outsourcing, and segment elimination decisions LO 13-2, 13-3, 13-4 Benson 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 35,000 and 67,000 units per yeat. Required a. A large discount store has approached the owner of Benson about buying 6,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Benson'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 Benson accept the special order? b-1. Benson has an opportunity to buy the 38,000 colculators it currently makes from a reliable competing manufacturer for $5.90 each. The product meets Benson's quality standards. Benson could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Benson to make and buy the 38,000 calculators. Required a. A large discount store has approached the owner of Benson about buying 6,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Benson'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 Benson accept the special order? b-1. Benson has an opportunity to buy the 38,000 calculators it currently makes from a reliable competing manufacturer for $5.90 each. The product meets Benson's quality standards. Benson could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Benson to make and buy the 38,000 calculators. b-2. Should Benson buy the calculators or continue to make them? b-3. Should Benson buy the calculators or continue to make them, if the volume of sales were increased to 67,000 units? c. 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? Complete this question by entering your answers in the tabs below. A large discount store has approached the owner of Benson about buying 6,000 calculator5. It would repiace The Math Machine's label with its own logo to avold affecting Benson'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 Benson accept the special order? (Negative amounts should be indicated by a minus sign.) Complete this question by entering your answers In the tabs below. Benson has an opportunity to buy the 38,000 calculators it currently makes from a rellable competing manufacturer for $5.90 each. The product meets Benson's quality standards. Benson could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Benson to make and buy the 38,000 caiculators. Complete this question by entering your answers in the tabs below. Should Benson buy the calculators or continue to make them? Complete this question by entering your answers in the tabs below. Should Benson buy the calculators or continue to make them, if the volume of sales were increased to 67,000 units? 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.) Part c) asks you to determine whether the calculator division should be eliminated with a yes or no answer. Further explain why you you reached your conclusion in a brief paragroph. Problem 13-28A (Algo) Comprehensive problem including special order, outsourcing, and segment elimination decisions LO 13-2, 13-3, 13-4 Benson 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 35,000 and 67,000 units per year. a. A large discount store has approached the owner of Benson about buying 6,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Benson'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 Benson accept the special order? b-1. Benson has an opportunity to buy the 38,000 calculators it currently makes from a reliable competing manufacturer for $5.90 each. The product meets Benson's quality standards. Benson could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Benson to make and buy the 38,000 calculators. b-2. Should Benson buy the calculators or continue to make them? b-3. Should Benson buy the calculators or continue to make them, if the volume of sales were increased to 67,000 units? c. 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? Complete this question by entering your answers in the tabs below. Benson has an opportunity to buy the 38,000 calculators it currently makes from a reliable competing manufacturer for $5.90 each. The product meets Benson's quality standards. Benson coulf continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Benson to make and buy the 38,000 calculators. Complete this question by entering your answers in the tabs below. Should Benson buy the calculators or continue to make them? Should Benson buy the calculators or continue to make them? Complete this question by entering your answers in the tabs below. Should Benson buy the calculators or continue to make them, if the volume of sales were increased to 67,000 units? Should Benson buy the calculators or continue to make? Because the calculator division is currently operating at a loss, should it the 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.) Part c) asks you to determine whether the calculator division should be eliminated with a yes or no answer. Further explain why you you reached your conclusion in a brief paragraph
