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Can someone double check answer on Case, I am not sure which one is correct because there are two different solutions. You can find case

Can someone double check answer on Case, I am not sure which one is correct because there are two different solutions. You can find case online on link below: https://www.coursehero.com/u/file/71952024/Case-Rovercodocx/

One of the offered solution that could be correct I share in form of image.

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tl Answer: Based on the computations below, it the company tend to abandon the project, they will lose a potential earnings of almost 230,000. Step by step explanation: Computations: Condom Project Abandon Project Sale of Robots. [anon 15999: csssapoooo moo Less: Variable Costs {6.000 x 591?]- E5,502.000.00 0.00 Cantrhnim Margin 092,000.00 0.00 Either revenues: Sa|e of special miniature hvd'auic mechanism 0.00 \"5,000.00 Sale of uroloe control testing equipment 1,500.00 0,500.00 Total Income 491,500!\" 53, 500.00 Less: Costs Market Research Cost E35,000.00 0.00 Final pavrnentfor patent 120,000.00 0.00 Gross salaries of two development engineers 15,000. 00 [36,000.00 Gross salary of new engineer 012,000.00 0.00 Materials and equipment [19,000.00 0.00 Overheads 055,000.00 13,000.00 Total Expensasmets easement 3,000.00 Net lnoome 233,500.00 {500.00 Net Differential ofCondnuina project versus abandon\" [230,500 [-500'\" 230,000.00 Based on the differential. ifthe company tend to abandon the project. they will lose a potential eamings of almost 139,000. This is due to die fact 'dtatthev can be able to sold the production of robots which can be sold for the year. According to the parable rn, they can sold the 0,000 robots produced and be sold forthe year. The 6,000 orders from contact is not included as relevant cost since bolh will be lite same to be reoeived eltherfrorn continuing or abandoning the project a s it will be needed to be delivered to the customer. Relevant costs are 'dtose cash flows that will be dilferentfrom two choices, these shall be treated as relevant costs. Recommendations: I would like to recommend to the managertat based on relevant cash inflows and outows. the oom oany may lose potential eaming s of 239.000 if it abandon the said project. They should continue to do the project as it will be Feasibble for the company. {13,000 :1 2 engineers} {depreciation of 15,000 and 3.000]

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