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Exercise 20-06 a1-a2 (Video) (Part Level Submission) Sheridan, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for
Exercise 20-06 a1-a2 (Video) (Part Level Submission) Sheridan, 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 19,600 Tri-Robos is as follows. Direct materials ($50 per robot) Direct labor ($39 per robot) Variable overhead ($7 per robot) Allocated fixed overhead ($31 per robot) Total Cost $980,000 764,400 137,200 607,600 $2,489,200 Sheridan is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,273,600. Following are independent assumptions. (a1) (2) Your answer is partially correct. Try again. Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Sheridan can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the numbe e.g.-45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials Direct labor Variable overhead 1449 bigdato: Fixed overhead Opportunity cost Purchase price Totals Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer 4:35 PM
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