Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a...

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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

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