Problem 3 ents produces The Math Machine, an inexpensive calculator. The company's accountant recently prepared the following income statement showing annual Bain Corporation makes and sells state-of-the art electronics products. One of its segm chief revenues and expenses associated with the segment's operating activities. The relevant or the production and sale of the calculators is between 30,000 and 60,000 units per year Revenue (40,000 units x $10.80) $432,000 Unit-level variable costs: Materials cost 140.000 x $2.7 Labor cost (40.000 x $1.20) Manufacturing overhead (40,000 x (108,000 [48,000) (48,000) Shipping and handling (40,000 x $0.30) Sales commissions 140.000 x $1 .20) (12000 Contribution margin Fixed expenses: 168.000 24,000) 72,000) 196,000] costs Salary of production supervisor Allocated companywide facility-level expenses Net loss $124.000 Consider each of the following requirements independently: A large discount store has approached the owner of Bain about buying 5.000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Bain'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 $6.60 per calculator. Based on quantitative factors alone, should Bain accept the special order? Support your answer with appropriate computations Specifically, by what amount would the special order increase or decrease profitability? Bain has the opportunity to buy 40.000 calculators it currently makes from a reliable competing manufacturer for $6.72 each. The product meets Bain's quality standards. Bain would continue to use its own logo, advertising program, and sales program to distribute the products. Should Bain buy the calculators or continue to make them? Support your answer with appropriate computations. Specifically, how much more or less would it cost to buy the calculators than to make them? Would you answer change if the volume of sales were increased to 60,000 units? 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. a. b. c. Specifically, by what amount would the segment's elimination increase or decrease profitability