Walton 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 72,000 units per year.
Revenue (45,000 units × $11.00)
$
495,000
Unit-level variable costs
Materials cost (45,000 × $3.00)
(135,000
)
Labor cost (45,000 ×...