Sheridan, 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. Cost Direct materials ($49 per robot) $1,014,300 Direct labor ($42 per robot) 869,400 Variable overhead ($5 per robot) 103,500 Allocated fixed overhead ($29 per robot) 600,300 Total $2,587,500 Sheridan is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,380,500. Following are independent assumptions. (a1) 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 e.g.-45 or parentheses e.g. (45).) Direct materials Direct labor Variable overhead Make 1014300 869400 i 103500 i LA Buy i i +A Net Income Increase (Decrease) 1014300 869400 103500 Direct materials Direct labor Variable overhead Fixed overhead Purchase price Total annual cost LA 1014300 i 869400 i 103500 i LA +A 1014300 869400 103500 600300 i 195300 i 405000 2587500 i $ 1A 2380500 i 2575800 Using incremental analysis, determine whether Sheridan should accept this offer. The offer should be accepted eTextbook and Media (a2) -2380500 +A $ 11700 Attempts: unlimited Your answer is partially correct. Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Sheridan 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 parentheses e.g. (45).) Direct materials +A Make 1014300 +A Buy +A Net Income Increase (Decrease) 1014300 (a2) Your answer is partially correct. Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Sheridan 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 parentheses e.g. (45).) Direct materials Direct labor +A Make 1014300 i 869400 +A Buy 600300 i 600300 i Variable 103500 i overhead Fixed overhead Opportunity 375000 i cost Purchase price Totals 2962500 i +A +A Net Income Increase (Decrease) 1014300 869400 103500 2380500 -2380500 2980800 Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer should not be accepted eTextbook and Media View Policies Show Attempt History Current Attempt in Progress Carla Vista Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 118,600 units. Sales Cost of goods sold Amount $4,506,800 3,475,506 Selling and administrative expenses 498,060 Net income $533,234 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $249,000. In July, normally a slack manufacturing month, Carla Vista Sports receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) Your answer is correct. (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Cost of goods sold Selling and administrative +A Reject Order +A Accept Order 280,000.00 212,100.00 i +A Net Income Increase (Decrease) 280,000.00 -212,100.00 i 28,300.00 i -28,300.00 Revenues Cost of goods sold Selling and administrative expenses Net income +A Order +A (b) Should Carla Vista Sports Inc. accept the special order? Yes eTextbook and Media (c) * Your answer is incorrect. mecept Order 280,000.00 212,100.00 i +A (Decrease) 280,000.00 -212,100.00 28,300.00 i -28,300.00 39.600.00 39,600.00 Attempts: unlimited What is the minimum selling price on the special order to produce net income of $5.16 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ eTextbook and Media Save for Later 30.93 Attempts: unlimited Submit