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INSTRUCTIONS: Answer all questions, Marks will be awarded for correct workings. Question 1 Abu Dhabi Technologies has recently started the manufacture of a robot that

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INSTRUCTIONS: Answer all questions, Marks will be awarded for correct workings. Question 1 Abu Dhabi Technologies has recently started the manufacture of a robot that can scan a home for fires and gas leaks and then transmit this information to a smart- phone. T costs to manufacture 20,000 robots is as follows. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 $2.520,000 Abu Dhabi is considering buying the robots from Jumeirah Inc., which sells them at $105 per robot. If Abu Dhabi decides to buy the robots, $150,000 of the fixed overhead cost will be avoided (saved). Abu Dhabi could use the remaining capacity to generate additional income of $175,000 Required Conduct incremental analysis [6 Marks)

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