Vernon 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 33,000 and 71,000 units per year. Revenue (47,000 units x $9.00) $ 423,000 Unit-level variable costs Materials cost (47, 000 x $2.00) (94 , 000) Labor cost (47, 000 x $1.00) (47, 060) Manufacturing overhead (47, 000 x $0.20) (9, 400) Shipping and handling (47,000 x $0.24) (11, 280) Sales commissions (47, 000 x $2.00) Contribution margin 167 , 320 Fixed expenses Advertising costs (30, 600) Salary of production supervisor 66, 000 Allocated companywide facility-level expenses (82, 060) Net loss $ (10, 680) Required a. A large discount store has approached the owner of Vernon about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Vernon'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 $4.20 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Vernon accept the special order? b-1. Vernon has an opportunity to buy the 47,000 calculators it currently makes from a reliable competing manufacturer for $4.60 each. The product meets Vernon's quality standards. Vernon could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Vernon to make and buy the 47,000 calculators. b-2. Should Vernon buy the calculators or continue to make them? b-3. Should Vernon buy the calculators or continue to make them, if the volume of sales were increased to 71,000 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 Vernon about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Vernon'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 $4.20 perRequired a. A large discount store has approached the owner of Vernon about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Vernon'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 $4.20 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Vernon accept the special order? b-1. Vernon has an opportunity to buy the 47,000 calculators it currently makes from a reliable competing manufacturer for $4.60 each. The product meets Vernon's quality standards. Vernon could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Vernon to make and buy the 47,000 calculators. b-2. Should Vernon buy the calculators or continue to make them? b-3. Should Vernon buy the calculators or continue to make them, if the volume of sales were increased to 71,000 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 Vernon about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Vernon'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 $4.20 per calculator. Calculate the contribution margin from the special order. Based on quantitative factors alone, should Vernon accept the special order? Note: Negative amount should be indicated by a minus sign. Show less A Contribution margin (loss) Should Vernon accept the special order?Complete this question by entering your answers in the tabs below. Reg A Req B1 Reg B2 Reg B3 Req C Vernon has an opportunity to buy the 47,000 calculators it currently makes from a reliable competing manufacturer for $4.60 each. The product meets Vernon's quality standards. Vernon could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Vernon to make and buy the 47,000 calculators. Make Buy Total relevant costComplete this question by entering your answers in the tabs below, Req A Reg B1 Req B2 Req B3 Reg C Should Vernon buy the calculators or continue to make them? Should Vernon buy the calculators or continue to make? \fComplete this question by entering your answers in the tabs below. Reg A Reg B1 Reg B2 Req B3 Reg 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. Show less Contribution to profit (loss) Should it be eliminated from the company's operations