Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer a2 Your answer is correct. Assume that $405,000 of the fixed overhead cost can be avoided, (Enter negative amounts using either a negative

please answer a2 image text in transcribed
image text in transcribed
image text in transcribed
Your answer is correct. Assume that $405,000 of the fixed overhead cost can be avoided, (Enter negative amounts using either a negative sign preceding the number es -45 or parentheses es. (45).) Using incremental analysis, determine whether Jobs should accept this offer. 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 parentheseseg. (45).) Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer Jobs, 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 20,700 Tri-Robos is as follows. Jobs is approached by Tienh Inc, which offers to make Tri-Robo for $115 per unit or $2,380,500. Following are independent assumptions

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 for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

16th Edition

78110939, 978-0078110931

More Books

Students also viewed these Accounting questions

Question

Which two days appear to have the lowest transaction amounts?

Answered: 1 week ago

Question

Which two days appear to have the highest transaction amounts?

Answered: 1 week ago