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Ivanhoe, 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
Ivanhoe, 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 20,400 Tri-Robos is as follows. Cost Direct materials ($ 51 per robot) $ 1,040,400 Direct labor ($ 39 per robot) 795,600 Variable overhead ($ 7 per robot) 142,800 Allocated fixed overhead ($ 29 per robot) 591.600 Total $ 2.570.400 Ivanhoe is approached by Tienh Inc., which offers to make Tri-Robo for S 116 per unit or $ 2,366,400. Following are independent assumptions. (a 1) 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).) . 10C Mostly cloudy (a 1) 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).) Make Net Income Increase (Decrease) Buy Direct materials $ $ Direct labor Variable overhead Fixed overhead Purchase price Total annual cost $ $ $ Using incremental analysis, determine whether Ivanhoe should accept this offer. The offer e Textbook and Media Attempts: 0 of 5 used Submit Answer Save for Later (22) The parts of this question must be completed in order. This part will be available when you complete the part above
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