Thompson Company Thompson Company produces scientific and business calculators. For the coming year, Thompson expects to sell 200,000 scientific calculators and 100,000 business calculators. A segmented income statement for the two products is given below: Sales - Variable expenses = Contribution margin - Direct fixed costs = Segment margin - Common fixed costs = Operating income Total $7,000,000 3,500,000 $3,500,000 2,160,000 $1,340,000 $800,000 $540,000 Scientific 25 $5,000,000 12 2,400,000 $2,600,000 1,200,000 $1,400,000 Business $2,000,000 1,100,000 $900,000 960,000 - $60,000 -1- Compute the number of scientific calculators and the number of business calculators that must be sold to obtain a zero segment margin. -2- Compute the sales volume that must be generated for the whole company to break even,. -3- The company wonders whether to stop the business calculators. It would suppress $800,000 of its direct fixed costs. Would it be profitable? -4- The company considers the possibility of launching an advertising campaign specific to the business calculators. It would cost $40,000. From which volume increase of the business calculators' sales would the campaign become profitable? -5- The company considers also the possibility of giving the manufacturing of one the business calculators' components to a subcontractor. It would decrease the direct costs by $150,000 and the component currently represents 10% of the unit variable cost. A subcontractor makes a bid for the component at $2.50 per unit. To what condition should the company accept the subcontractor's bid