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Dear Tutor, Please I need your help to solve this as soon as possiple. Thank you in advance. Question 2 Flint, Inc. has recently started
Dear Tutor, Please I need your help to solve this as soon as possiple. Thank you in advance.
Question 2 Flint, 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 20,900 Tri-Robos is as follows. Direct materials ($52 per robot) Direct labor ($42 per robot) Variable overhead ($7 per robot) Allocated fixed overhead ($29 per robot) Total Cost $1,086,800 877,800 146,300 600,000 $2,710,900 Flint is approached by Tienh Inc., which offers to make Tri-Robo for $119 per unit or $2,487,100. Following are independent assumptions. (a1) Prepare an incremental analysis. Assume that $405,000 of the fixed overhead cost can be avoided. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials $ $ $ Direct labor Variable overhead Fixed overhead Purchase price Total annual cost Using incremental analysis, determine whether Flint should accept this offer. The offer Click if you would like to show Work for this question: Open Show WorkStep by Step Solution
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