Question: Entry Rules: Round your FINAL answer to the nearest DOLLAR Examples: If your answer is $24,500.4718, enter 24500 If your answer is $24,500.5753, enter 24501
Entry Rules: Round your FINAL answer to the nearest DOLLAR Examples: If your answer is $24,500.4718, enter 24500 If your answer is $24,500.5753, enter 24501 If your answer is $24,500.00, enter 24500 If your answer is $0.4718, enter O If your answer is $0.5718, enter 1 If your answer is ZERO, enter O Never enter $ or, when inputting numerical answers If you are asked to input a letter or a word, be sure to spell it correctly and do not add additional spaces or punctuation. QUESTION: Dolar Inc. manufactures robots which vacuum your home. Normal production is 19,900 robots per year. The follow cost information is available: Direct materials $37.00 Direct labour $25.00 Variable overhead $4.00 Fixed overhead $20.00 $86.00 Total Fixed overhead is allocated to the cost of the product using normal production. Dolar Inc. has been approached by Techman Ltd. who offer to make the robots for $72.00 per unit. If Dolar Inc. outsources the production of the robots they can use their production resources to generate additional income of $108,800. None of the fixed costs would be eliminated if Dolar Inc. outsourced the production of the robots. Using the above information answer the following questions. If Dolar Inc. decides to buy the robots from Techman Ltd. would their operating income increase or decrease? Enter the letter A for increase. Enter the letter B for decrease. A/ By how much will operating income increase or decrease by if Dolar Inc. purchased the robots from Techman Ltd.? Enter your answer as a positive number. Should Elsie Inc. make or buy the robots? Enter the letter A for make. Enter the letter B for buy. A/ A/
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