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Current Attempt in Progress Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas

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Current Attempt in Progress Jobs, 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 19,500 Tri-Robos is as follows. Cost Direct materials (548 per robot) Direct labor ($39 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($31 per robot) Total $936.000 760,500 117,000 604,500 $2.418,000 Jobs is approached by Tienh Inc, which offers to make Tri-Robo for $113 per unit or $2,203,500. Following are independent assumptions. (a1) Question 10 of 13 0.5/1 Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45)) Net Income Increase (Decrease) Make Buy Direct materials $ 936.000 i 936000 260.500 i o 780500 Direct labor Variable overhead Fixed overhead 117.000 i 117000 604 500 i 199500 i 105000 Purchase price 0 2.203.500 i 128203.500) $ Total annual cost 2:418,000 $ 2403000 $ 15000 Using incremental analysis, determine whether Jobs should accept this offer. The offer should be accepted e Textbook and Media Question 10 of 13 0.5/1 Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc, Jobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e 8- (45).) Make Net Income Increase (Decrease) Buy Direct materials $ Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer Save for Later Attempts: 0 of 3 used Submit

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