Question: Current Attempt in Progress Sunland, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas


Current Attempt in Progress Sunland, 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 20,800 Tri-Robos is as follows. Cast $1.040,000 Direct materials ($50 per robot) Direct labor ($40 per robot) 832,000 Variable overhead ($6 per robot) 124,800 Allocated fixed overhead ($29 per robot) 603.200 Total $2,600,000 Sunland is approached by Tienh Inc, which offers to make Tri-Robo for $115 per unit or $2,392,000, Following are independent assumptions, numberes 45 or parentheses e 1994 Net Income Increase (Decrease) Make Buy Direct materials 1,040,000 1.040.000 Direct labor $32.000 $32.000 Variable overhead 12400 124000 Fixed overhead 603200 394200 405.000 Purchase price 2,392,000 3,392.000 Total annual cost $ 2.000.000 1 2.590.200 2.100 Using incremental analysis, determine whether Sunland should accept this offer The offer should be As that one of the food overhead can be avoided. However, in the robots are purchased from Tierhinc, Sunland can use the se productive restorate additional income of $375.000. Internative amounts using the action preceding the more or presses (451) Net Income Increase Decrease Male Buy Direct materials Direct Variable overhead Fedoverted 11011 LIGION Opportunity cost Picha price Tota on the beautionndicate whether the offer should be compted or rejected! The
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