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need help understanding Pharoah has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then
need help understanding
Pharoah has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to mobile phone. The cost structure to manufacture 19,900 RecRobos is as follows: Pharoah is approached by Foress inc., which offers to make RecRobo for $76 per unit or $1,512,400. Using incremental analysis, determine whether Pharoah should accept this offer under each of the following independent. assumptions: (1) Assume that $238.800 of the fored overhead cost is avaldabie. Af an amount reduce the net income then enter witha ngativerinn included in both options when solving this problems) Bhowad the ofier be scculedi (2) Assume that none of the foed overhead is avoidable. However, if the robots are purchased from foress inc. Pharoah can use the released productive resources to generate additional income of $138,800. If an amount reduce the net income then erier with at oegative itgn preceding the number es- 15,000 or porenthesis ess 115,000N. While alternate opproades are poselble icelevant fued austs shoulld be inchuded in both options when solving this problems Should the offer be accepted Step by Step Solution
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