Thornton 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 34,000 and 74,000 units per year. Revenue (36,000 units $12.00) Unit-level variable costs Materials cost (36,000 x $3.00) Labor cost (36,000 $2.00) Manufacturing overhead (36,000 x $0.10) Shipping and handling (36,eee $0.25) Sales commissions (36,000 x $2.00) Contribution margin Fixed expenses Advertising costs Salary of production supervisor Allocated companywide facility-level expenses Net loss Required $ 432,000 (108,000) (72,000) (3,600) (9,000) (72,000) 167,400 (29,000) (68,000) (81,000) $ (10,600) a. A large discount store has approached the owner of Thornton about buying 7,000 calculators. It would replace The Math Machine's Required a. A large discount store has approached the owner of Thornton about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Thornton'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 $5.50 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Thornton accept the special order? b-1. Thornton has an opportunity to buy the 36,000 calculators it currently makes from a reliable competing manufacturer for $6.10 each. The product meets Thornton's quality standards. Thornton could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Thornton to make and buy the 36,000 calculators. b-2. Should Thornton buy the calculators or continue to make them? b-3. Should Thornton buy the calculators or continue to make them, if the volume of sales were increased to 74,000 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. Req A Req B1 Req B2 Req B3 Req C A large discount store has approached the owner of Thornton about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Thornton'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 $5.50 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Thornton accept the special order? Note: Negative amount should be indicated by a minus sign. Contribution margin (loss) Should Thornton accept the special order? Show less & Rey A Req B1> Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req C Thornton has an opportunity to buy the 36,000 calculators it currently makes from a reliable competing manufacturer for $6.10 each. The product meets Thornton's quality standards. Thornton could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Thornton to make and buy the 36,000 calculators. Make Buy Total relevant cost < Req A Req B2 > Show less A Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req C Should Thornton buy the calculators or continue to make them? Should Thornton buy the calculators or continue to make? < Req B1 Req B3 > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req C Should Thornton buy the calculators or continue to make them, if the volume of sales were increased to 74,000 units? Should Thornton buy the calculators or continue to make? < Req B2 ReqC > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req 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? Note: Negative amount should be indicated by a minus sign. Contribution to profit (loss) Should it be eliminated from the company's operations? Show less A