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Jordan Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine,...

Jordan Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an ib-1. Jordan has an opportunity to buy the 38,000 calculators it currently makes from a reliable competing manufacturer for $6

Jordan 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 37,000 and 71,000 units per year. $ 418,000 Revenue (38,000 units * $11.00) Unit-level variable costs Materials cost (38,000 * $3.00) Labor cost (38,000 * $2.00) Manufacturing overhead (38,000 * $0.10) Shipping and handling (38,000 * $0.25) Sales commissions (38,000 * $2.00) Contribution margin Fixed expenses Advertising costs Salary of production supervisor Allocated company-wide facility-level expenses Net loss (114,000) (76,000) (3,800) (9,500) (76,000) 138,700 (27,000) (67,000) (82,000) $ (37,300) Required a. A large discount store has approached the owner of Jordan about buying 7,000 calculators. It would replace The Math Machine's label with its own logo to avoid affecting Jordan's existing customers. Because the offer was made directly to the owner, no sales commissions on the transaction would ut the discount store is willing to pay only $5.60 per Calculate the contribution margin from the special order. Based on quantitative factors alone, should Jordan accept the special order?
b-1. Jordan has an opportunity to buy the 38,000 calculators it currently makes from a reliable competing manufacturer for $6.30 each. The product meets Jordan's quality standards. Jordan could continue to use its own logo, advertising program, and sales force to distribute the products. Calculate the total cost for Jordan to make and buy the 38,000 calculators. b-2. Should Jordan buy the calculators or continue to make them? b-3. Should Jordan 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?
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jordhan corporation makes and sell state of the art electronics products.

sells state-of-the-art eledramics Jordan Corporation makes and Products. a) A large discount store has approached the owner othe shipping and handling sales commissions advertir -sing costs, and allocated company-wide facility level expenses are irreC Because the calculator division is a loss, should it be eliminated from currently operating at the companys operator? $ 44

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