*Exercise 21-6 Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that...

80.2K

Verified Solution

Question

Accounting

image
image
*Exercise 21-6 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 20,600 Tri-Robos is as follows. Direct materials ($52 per robot) Direct labor ($40 per robot) Variable overhead ($7 per robot) Allocated fixed overhead ($29 per robot) Cost $1,071,200 824,000 144,200 600,000 $2,639,400 Total Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $118 per unit or $2,430,800. Following are independent assumptions Your answer is partially correct. Try again. 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. -15 or parentheses e.g. (15).) Net Income Increase (Decrease) Make Buy Direct materials Direct labor Variable overhead Fixed overhead Purchase price $10712 240 1442 240 0 144200 597400 597400 Total annual cost 2430800 (206000 2636800 Using incremental analysis, determine whether Jobs should accept this offer. The offer should be accepte Your answer is partially correct. Try agair. ssume that none of the fixed overhead can be avoided. However, if the robots are purchased from ienh Inc., Jobs can use the released productive resources to g Enter negative amounts using either a negative sign preceding the number e.g.-45 or

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students