The following information applies to the products of Gibson Company. Identify the product that should be produced or sold under each of the following constraints. Consider each constraint separately. Required a. One unit of Product A requires 3 hours of labor to produce, and one unit of Product B requires 5 hours of labor to produce. Due to labor constraints, demand is higher than the company's capacity to make both products. b. The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product B are 13,000 units and 10,000 units, respectively. c. The maximum number of machine hours available is 45,000 . Product A uses 3 machine hours, and Product B uses 8 machine hours. The company can sell all the products it produces. Complete this question by entering your answers in the tabs below. One unit of Product A requires 3 hours of labor to produce, and one unit of Product B requires 5 hours of labor to produce. Due to labor constraints, demand is higher than the company's capacity to make both products. Note: Round your answers to 2 decimal places. Problem 6-30A (Algo) Comprehensive problem including special order, outsourcing, and segment elimination decisions LO 62,63,64 Baird 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 32,000 and 66,000 units per year. Required a. A large discount store has approached the owner of Baird about buying 9,000 caiculators. It would replace The Math Machine's label with its own logo to avoid affecting Baird'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 $6.20 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Baird accept the special order? b-1. Baird has an opportunity to buy the 40,000 calculators it currently makes from a reliable competing manufacturer for $6.50 each. The product meets Baird's quality standards. Baird could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Baird to make and buy the 40,000 calculators. b-2. Should Baird buy the calculators or continue to make them? b-2. Should Baird buy the calculators or continue to make them? b-3. Should Baird buy the calculators or continue to make them, if the volume of sales were increased to 66,000 units? c. 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. 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 Baird about buying 9,000 calculators. It would replace The Math Machine's label with its own logo to avold affectiog Baird's existing customers. Because the offer was made directly to the calculator. Calculate the contributio transaction would be involved, but the discount store is willing to pay only $6.20 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Baird accept Note: Negative amount should be indicated by a minus sign. b-2. Should Baird buy the calculators or continue to make them? b-3. Should Baird buy the calculators or continue to make them, if the volume of sales were increased to 66,000 units? c. 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. Specifically, by what amount would the segment's elimination increase or decrease profitability? Complete this question by entering your answers in the tabs below. Baird has an opportunity to buy the 40,000 calculators it currently makes from a reliable competing manufacturer for $6.50 each. The product meets Baird's quality standards. Baird could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Baird to make and buy the 40,000 calculators. program, and sales force to distribute the products. Calculate the total cost for Baird to make and buy the 40,000 calculators. b-2. Should Baird buy the calculators or continue to make them? b-3. Should Baird buy the calculators or continue to make them, if the volume of sales were increased to 66,000 units? c. 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. Specifically, by what amount would the segment's elimination increase or decrease profitability? Complete this question by entering your answers in the tabs below. Should Baird buy the calculators or continue to make them? Should Baird buy the calculators or continue to make? b-1. Baird has an opportunity to buy the 40,000 calculators it currently makes from a reliable competing manufacturer for $6.50 each. The product meets Baird's quality standards. Baird could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Baird to make and buy the 40,000 calculators. b-2. Should Baird buy the calculators or continue to make them? b-3. Should Baird buy the calculators or continue to make them, if the volume of sales were increased to 66,000 units? c. 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. Specifically, by what amount would the segment's elimination increase or decrease profitability? Complete this question by entering your answers in the tabs below. Should Baird buy the calculators or continue to make them, if the volume of sales were increased to 66,000 units? Should Baird buy the calculators or continue to make? operations? Support your answer with appropriate computations. Specifically, 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? Support your answer with appropriate computations. Specifically. by what amount would the segment's elimination increase or decrease profitability? Note: Negative amount should be indicated by a minus sign