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Please show work on each number! Exercise 20-06 al-a2 (Video) (Part Level Submission) Blossom, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot
Please show work on each number!
Exercise 20-06 al-a2 (Video) (Part Level Submission) Blossom, 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 20,100 Tri-Robos is as follows. Direct materials ($51 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Cost $1,025,100 804,000 120,600 603,000 $2,552,700 Total Blossom is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,331,600. Following are independent assumptions. v (al) Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses 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 Blossom should accept this offer. The offer Click if you would like to Show Work for this question: Open Show Work TAK TO TEYTStep by Step Solution
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