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PLEASE LOOK AT THE 3rd PHOTO!!!! Jobs, Inc. has recently started the manufacture of Tri-Robo, a three wheeled robot that can scan a home for
PLEASE LOOK AT THE 3rd PHOTO!!!!
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 20,600 Tri-Robos is as follows. Direct materials ($52 per robot) Direct labor ($40 per robot) Variable overhead ($7 per robot) Allocated we overhead ($29 per robot) Total Cost $1,071.200 824,000 144,200 592.400 $2636.800 Jos la approached by Tech Inc, which offers to make T-Robo for $118 per unit or $2,430.800. Following are independent assumptions (1) O 0 0 3 1 5 7 8 9 e r t u 1 O D S d f 60 h j K > x V b n m alt Net Income Increase (Decrease) Make Buy $ Direct materials $ 10712001 1071200 Direct labor 824000 1 82000 164200 i 144200 Variable overhead Feed overhead 597400 192400 405000 Purchase price 2430000 -2430800 Total anual cost $ 2000 2421300 TO Using incrementat rays, determine whether Jobs should accept this offee The oler o 3 AN 5 6 8 9 w e r t y u 1 O S d f g h j K c V b n m alt Assume that none of the feed overhead can be avoided. However, if the robots are purchased from Tierh Inc, lobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sten preceding the number eg.-45 or parentheses es (45) Net Income Increase Decrease] Make Buy Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Total 5 C o $ 4 5 7 B 3 1 0 c w u t r Step by Step Solution
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