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help on the inocorrect parts of this module Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling the
help on the inocorrect parts of this module
Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling the raw materials needed by customers to weave baskets of their own. Unfortunately, owing to space limitations, Anna is unable to carry all varieties of kits originally assembled and must choose between two basic packages, The Basic Kit includes undyed, uncut reeds (with dye included) for weaving one basket. This basic package costs Anna $10 and sells for $23. The second kit, called Stage 2, includes cut reeds that have already been dyed. With this kit the customer need only soak the reeds and weave the basket. Anna produces the Stage 2 kit by using the materials included in the Basic Kit. Because she is more efficient at cutting and dying reeds than her average customer, Anna is able to produce two Stage 2 kits in one hour from one Basic Kit. (She values her time at $20 per hour) The Stage 2 kit sells for $33, Prepare an incremental analysis for the Anna's basketweaving studio (Enter negative amounts using either a negative sign preceding the number eg: -45 or parentheses eg. (45)). Sell (Basic Kit) Process Further (Two Stage 2 Kits) Net Income Increase (Decrease) 23 S 33 13 Sales per unit Costs per unit Direct materials $ 5 10 5 $ 0 10 Direct labor $ 10 15 $ Total Net income per 13 $ VA 5 $ unit 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 20,800 Tri-Robos is as follows. Cost $1.040,000 Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($29 per robot) 832,000 124,800 603.200 Total $2,600,000 Jobs is approached by Tienh Inc, which offers to make Tri-Robo for $115 per unit or $2,392,000, Following are independent assumptions. Net Income Increase (Decrease) Make Buy $ Direct materials 1.040,000 i 1040,000 Direct labor 832.000 832.000 Variable overhead 124,800 i 0 124,800 0 Fixed overhead 603,200 1 0 Purchase price $ $ 2,600,000 Total annual cost Using incremental analysis, determine whether Jobs should accept this offer. The offer should be accepted Step by Step Solution
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