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all of it is one problem together, pls help. thank you for your time. appreciate it! in Prost Crane, Inc. has recently started the manufacture
all of it is one problem together, pls help. thank you for your time. appreciate it!
in Prost Crane, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,200 Tri-Robos is as follows. Cost $969,600 848,400 Direct materials ($48 per robot) Direct labor ($42 per robot) Variable overhead ($7 per robot) Allocated fixed overhead ($30 per robot) 141,400 606,000 Total $2,565,400 Crane is approached by Tienh Inc, which offers to make Tri-Robo for $116 per unit or $2,343,200. Following are independent assumptions. Your answer is partially correct. Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es (45) Net Income Increase (Decrease) Make Buy Direct materials $ 969600 O $ 969600 Direct labor 348400 0 848400 Variable band 141400 0 141400 Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) Net Income Increase (Decrease) Make Buy Direct materials 969600 0 969600 Direct labor 848400 0 848400 Variable overhead 141400 0 141400 Fixed overhead 606,000 0 -606,000 Purchase price 0 2343200 -2343200 Total annual cost 2.565,400 $ 2.343,200 Using incremental analysis, determine whether Crane should accept this offer. The offer should be accepted e Textbook and Media Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc, Crane can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Net Income Increase (Decrease) Make Buy Direct materials $ $ Direct labor Variable overhead Fixed overhead LIOODI! DOODINA DONTON Opportunity cost Purchase price Totals Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer should not be accepted V Step by Step Solution
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