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Sheridan, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for lives and gas leaks and then transmit
Sheridan, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for lives and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19.600 Tri-Robos is as follows Cost $980.000 Direct materials (550 per robot) Direct labor ($39 per roboti Variable overhead (57 per robot) 764,400 137,200 Allocated foxed overhead (531 per robot) 607600 Total 52.489.200 Sheridan is approached by Tinh Inc., which offers to make Tri Robo for 5116 per unit or $2.2738000 Following are independent assumptions Assume that $405,000 of the fixed overfald cost can be wolded. Enter negative amounts using the negotives preceding the numberes, -45 or parentheses es (451) Net Income Increase Decreased Make Buy Direct materials $ 980000 5 900000 Direct labor 764400 766000 Variable overhead 137200 Fixed overhead 3273800 275.000 Purchase price 2156000 $ 2278500 Totaannual cost
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