Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The photos kind of overlap, but if someone could help me that would be amazing! Thanks! Exercise 7-6 al-a2 (Video) Jobs, Inc. has recently started

image text in transcribed
image text in transcribed
image text in transcribed
The photos kind of overlap, but if someone could help me that would be amazing! Thanks!
Exercise 7-6 al-a2 (Video) 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 21,000 Tri-Robos is as follows. Cost Direct materials (549 per robot) $1,029,000 Direct labor ($41 per robot) 861,000 Variable overhead ($5 per robot) 105,000 Allocated floed overhead ($29 per robot) 609,000 Total $2,604,000 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $113 per unit or $2,373,000. Following are independent assumptions. Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number 8.9. -45 or parentheses c.9. (45).) Net Income Increase Make Buy (Decrease) Direct materials 1,029,000 1,029,000 Direct labor 861,000 861,000 Variable overhead 105,000 105,000 Fixed overhead 609.000 204.000 405.000 Fixed overhead 609,000 204,000 405,000 Purchase price Total annual cost Using incremental analysis, determine whether Jobs should accept this offer. The offer Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs 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).) Net Income Increase Make Buy (Decrease) Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Make Buy (Decrease) Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer Click if you would like to show Work for this question: Open Show Work Question Attemptsi 0 of 1 used

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

9 Keys To Successful Audits

Authors: Denise Robitaille

1st Edition

1932828680, 978-1932828689

More Books

Students also viewed these Accounting questions

Question

2. What is the business value of security and control?

Answered: 1 week ago