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DUE SOON HELP Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks
DUE SOON HELP
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 ($48 per robot) $936.000 Direct labor ($39 per robot) 760,500 Variable overhead ($6 per robot) 117,000 Allocated fixed overhead ($31 per robot) 604,500 Total $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. Increase Make 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 Buy (Decrease) Direct materials Direct labor Variable overhead Fixed overhead Purchase price Total annual cost The offer LINK TO TEXT VIDEO: APPLIED SKILLS Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tenh Inc., Jobs can use the released productive resources to gen additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number 0.9 -15 or parentheses 0.9 (45).) Net Income Increase Make Buy (Decrease) 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 Step by Step Solution
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