Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pharoah, 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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Pharoah, 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 19,500 Tri-Robos is as follows. Pharoah is approached by Tienh Inc, which offers to make Tri-Robo for $113 per unit or $2,203,500. 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 eg. 45 or parentheses e.g. (45).) Using incremental analysis, determine whether Pharoah should accept this offer. Using incremental analysis, determine whether Pharoah should accept this offer. The offer Solution (a2) Attempts: 1 of 1 uses Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh inc, Pharoah can use the released productive resources to generate additional income of $375,000. (Enter negotive amounts using either a negative sion preceding the number es. 45 or parentheses es. (45).). Based on the above assumptions, indicate whether the offer should be accepted or rejected

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

Auditing

Authors: Thomas D. Hubbard, J. R. Johnson, Steve Johnson, Joel D. Hubbard

6th Edition

0873932609, 9780873932608

More Books

Students also viewed these Accounting questions

Question

What are their resources?

Answered: 1 week ago