Bain Corporation makes and sells state-of-the-art electronics products

Bain 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 30,000 and 60,000 units per year. Revenue (40,000 units × $10.80).........................$432,000 Unit-level variable costs Materials cost (40,000 × $2.70) .........................(108,000) Labor cost (40,000 × $1.20) ......................... .....(48,000) Manufacturing overhead (40,000 × $1.20) ..............(48,000) Shipping and handling (40,000 × $0.30) ................(12,000) Sales commissions (40,000 × $1.20) .....................(48,000) Contribution margin........................................168,000 Fixed expenses Advertising costs......................... .................(24,000) Salary of production supervisor..........................(72,000) Allocated companywide facility-level expenses.......(96,000) Net loss....................................................$ (24,000) Required (Consider each of the requirements independently.) a. A large discount store has approached the owner of Bain about buying 5,000 calculators. It would replace The Math Machine s label with its own logo to avoid affecting Bain s existing customers. Because the offer wa