Question: Question 2 View Policies Current Attempt in Progress Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home

 Question 2 View Policies Current Attempt in Progress Jobs, Inc. has
recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan

Question 2 View Policies Current Attempt in Progress 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 20,800 Tri-Robos is as follows. Cost $1,040,000 Direct materials ($50 per robot) Direct labor ($40 per robot) 832,000 124,800 Variable overhead (56 per robot) Allocated fixed overhead ($29 per robot) 600,000 Total $2,596,800 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,392,000. 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 es. -45 or parentheses eg. (450) Net Income Increase (Decrease) Make Direct materials $ Direct labor Variable overhead Fixed overhead Purchase price Total annual cost Using incremental analysis, determine whether Jobs should accept this offer. The offer e Textbook and Media Assume that none of the foxed 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 eg. (45) Net Income Increase (Decrease) Make 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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!