Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ment CALCULATOR PRINTER VERSION 4 BACK NEX Exercise 7-6 al-a2 (Video) Jobs, Inc. has recently started the manufacture of T-Robo, a three-wheeled robot that can

image text in transcribed
image text in transcribed
image text in transcribed
ment CALCULATOR PRINTER VERSION 4 BACK NEX Exercise 7-6 al-a2 (Video) Jobs, Inc. has recently started the manufacture of T-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 19,700 Tri-Robos is as follows. Direct materials ($52 per robot) Direct labor ($40 per robot) Variable overhead ($7 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,024,400 788,000 137,900 591,000 $2,541,300 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $119 per unit or $2,344,300. Following are independent assumptions. Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number e.o. -45 or parentheses e.o. (45).) Net Income Increase (Decrease) Make Buy Direct materials $ $ $ Direct labor Variable overhead Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $119 per unit Following are independent assumptions. Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negati e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials $ $ $ Direct labor Variable overhead Fixed overhead Purchase price Total annual cost $ $ $ Using incremental analysis, determine whether Jobs should accept this offer. The offer CALCULATOR PRINTER VERSION RACK NEXT Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parenthesese.. (45).) Net Income Increase (Decrease) Make Buy 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? The offer Click if you would like to Show Work for this question: Open Show Work Pinhts Reserved. A Division of John Wind

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Audits In The Democratic Republic Of Congo

Authors: Charles Kyungu Kakudji

1st Edition

6206327043, 978-6206327042

More Books

Students also viewed these Accounting questions