Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 19.200 Tri-Robos is as follows. Direct materials ($51 per robot) Direct labor ($38 per robot) Variable overhead ($7 per robot) Allocated fixed overhead ($31 per robot) Total Cost $979,200 729,600 134,400 595,200 $2,438,400 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,227,200. Following are independent assumptions. Question 4 of 6 Doporony ww Direct materials 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 labor. Variable overhead Fixed overhead < > Purchase price Total annual cost Make The offer should be accepted: 979,200 i 729,600 i 134,400 i 2248200 $ Buy Using incremental analysis, determine whether Jobs should accept this offer. i 2.227.200 i 405.000 2632200 $ $ 12/15 E Net Income Increase (Decrease) 979.200 729,600 134,400 405,000 2,227,200 21000 Your answer is partially correct. 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).) Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals Make 979,200 i 729,600 i 134.400 i 595,200 i 375,000 i 2813400 SA Buy i 375,000 2.227.200 i 1852200 $ Net Income Increase. (Decrease) 979,200 729,600 134,400 375,000 2,227,200 9000 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 19.200 Tri-Robos is as follows. Direct materials ($51 per robot) Direct labor ($38 per robot) Variable overhead ($7 per robot) Allocated fixed overhead ($31 per robot) Total Cost $979,200 729,600 134,400 595,200 $2,438,400 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,227,200. Following are independent assumptions. Question 4 of 6 Doporony ww Direct materials 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 labor. Variable overhead Fixed overhead < > Purchase price Total annual cost Make The offer should be accepted: 979,200 i 729,600 i 134,400 i 2248200 $ Buy Using incremental analysis, determine whether Jobs should accept this offer. i 2.227.200 i 405.000 2632200 $ $ 12/15 E Net Income Increase (Decrease) 979.200 729,600 134,400 405,000 2,227,200 21000 Your answer is partially correct. 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).) Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals Make 979,200 i 729,600 i 134.400 i 595,200 i 375,000 i 2813400 SA Buy i 375,000 2.227.200 i 1852200 $ Net Income Increase. (Decrease) 979,200 729,600 134,400 375,000 2,227,200 9000
Expert Answer:
Answer rating: 100% (QA)
Based on the incremental analysis Jobs Inc should buy the TriRobos from Tienh Inc as it will result ... View the full answer
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
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 mobile phone. The cost...
-
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...
-
Liangquan Ltd. 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...
-
How many objects are eligible for garbage collection at the end of the main() method? A. None. B. One. C. Two. D. Three. E. The code does not compile. F. None of the above. package store; public...
-
What questions should you use to analyze a survey?
-
Geotechnical engineers use water-level "manometer" surveys to assess the levelness of newly constructed concrete slabs. Elevations are typically measured at eight points on the slab; of interest is...
-
The transactions for Crazy Curlz, Inc., for the month of June 2010 have been posted to the accounts as follows: Requirements 1. Prepare the journal entries that served as the sources for the six...
-
1. For each CardioGood Fitness treadmill product line (see the CardioGoodFitness file), construct two- way contingency tables of gender, education in years, relationship status, and self- rated...
-
The Megan Companies (MC) IPO offer price was $15 (per share). When MC shares began trading in the public market, the price was $13.50. The MC IPO was: a.) Underpriced by 10% b.) Overpriced by 11.11%...
-
A department store maintains data on customers, products, and purchase records in three tables: CUSTOMER, PRODUCT, and PURCHASE. The store manager wants to find the average price of all distinct...
-
Type five virtual machines the digital forensics use. Compare those five. Finally, in your opinion, which virtual machine is the best for work in digital forensics
-
Can you breakdown how the RBA has managed inflation over the last two decades in Australia? Some reference to economic data and economic models and how inflation affects the cost of living would be...
-
A blackbody emits at a peak wavelength of 5000 nm. What is its temperature?
-
Is empirical duration typically greater than or less than the analytical duration computed through the formula for spread duration? Why?
-
Find the value of the combination. 43 C4 43 C4 = (Type a whole number.)
-
Do you think that the business owners should switch to their new company on a full-time bases? Explain.
-
Maria feels she is a better than average test taker and will get a good score on the PSAT when she takes it next fall. What phenomenon is demonstrated by her feelings?
-
Explain the operation of the dividends received deduction.
-
What is management by exception? What criteria may be used in identifying exceptions?
-
What is a transfer price? Why is determining a fair transfer price important to division managers?
-
The following is a list of terms related to performance evaluation. (1) Balanced scorecard (2) Variance (3) Learning and growth perspective (4) Nonfinancial measures (5) Customer perspective (6)...
-
How do you allocate requirements?
-
How do you flow down requirements?
-
What is requirements flow down?
Study smarter with the SolutionInn App