Please help me answer this problem, thank you: Rundle 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 $72,000$ units per year.

Required

a$.$ A large discount store has approached the owner of Rundle about buying $6,000$ calculators. It would replace The Math Machine's

label with its own logo to avoid affecting Rundle'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\mathrm{.}70$ per calculator. Calculate the

contribution margin from the special order. Based on quantitative factors alone, should Rundle accept the special order?

b$-1.$ Rundle has an opportunity to buy the $35,000$ calculators it currently makes from a reliable competing manufacturer for $$6\mathrm{.}40$ each.

The product meets Rundle's quality standards. Rundle could continue to use its own logo$,$ advertising program, and sales force to

distribute the products. Calculate the total cost for Rundle to make and buy the $35,000$ calculators.

b$-2.$ Should Rundle buy the calculators or continue to make them?

b$-3.$ Should Rundle buy the calculators or continue to make them, if the volume of sales were increased to $72,000$ 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?

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Req A

Rundle has an opportunity to buy the $35,000$ calculators it currently makes from a reliable competing manufacturer for $$6\mathrm{.}40$

each. The product meets Rundle's quality standards. Rundle could continue to use its own logo$,$ advertising program, and

sales force to distribute the products. Calculate the total cost for Rundle to make and buy the $35,000$ calculators.