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Question 20 SY Teic has recently started to manufacture Recrobo, a three-wheeled robot that can scan a home for fires and pasteaks and then transmit
Question 20 SY Teic has recently started to manufacture Recrobo, a three-wheeled robot that can scan a home for fires and pasteaks and then transmit this information to a mobile phone. The cost structure to manufacture 20,100 RecRobos is as follows: Direct materials ($41 per robot) Direct labour ($28 per robot) Variable overhead (54 per robot) Allocated fixed overhead (525 per robot) Cast 5524,100 562,500 80,400 502,500 51.969,800 Total SY Teic is approached by Chen Inc, which offers to make RecRobo for $74 per unit or 51,457,400 Using incremental analysis, determine whether SY Tele should accept this offer under each of the following independent assumptions! (1) Assume that $341,700 of the fixed overhead cont is avoidable. (If an amount reduces the net income tren unter with a negative spa preceding the number of 15,000 or parenthesis, ... (15,000).) Net Income Increase (Decrease) Make Huy Direct materials $ Direct labour Martie overhand dove . Purchase should tre ter te accepted? (2) Assume that none of the foued overhead is avoidable. However, if the robots are purchased from Chen Inc, SY Tulcan use the released productive resources to generate additional income of $241,700. (If an amount reduces the net income then enter with a negative sin preceding the number -15,000 or parenthesis, 0.9. (15.000).) Net Income Increase Make Buy (Decrease) Direct materials . $ rect labour : . 1 1 Should the offer be accepted Direct labour Purchase price Total annual cost Fixed overhead Variable overhead Opportunity cost Direct materials Direct labour) HLT MULL Should the offer be accepted
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