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 20,300 Tri-Robos is as follows.
Cost | |||
---|---|---|---|
Direct materials ($49 per robot) | $994,700 | ||
Direct labor ($41 per robot) | 832,300 | ||
Variable overhead ($5 per robot) | 101,500 | ||
Allocated fixed overhead ($30 per robot) | 600,000 | ||
Total | $2,528,500 |
Jobs is approached by Tienh Inc., which offers to make Tri-Robo for
$114 per unit or $2,314,200.
Following are independent assumptions.
Part 1
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).)
Make | Buy | Net Income Increase (Decrease) |
|||||
---|---|---|---|---|---|---|---|
Direct materials | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
Direct labor | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Variable overhead | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Fixed overhead | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Purchase price | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Total annual cost | $enter a total amount for this column | $enter a total amount for this column | $enter a total amount for this column |
Using incremental analysis, determine whether Jobs should accept
this offer.
The offer select an optionshould be acceptedshould not be accepted should be acceptedshould not be accepted. |
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Part 2
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).)
Make | Buy | Net Income Increase (Decrease) |
|||||
---|---|---|---|---|---|---|---|
Direct materials | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
Direct labor | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Variable overhead | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Fixed overhead | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Opportunity cost | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Purchase price | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Totals | $enter a total amount for this column | $enter a total amount for this column | $enter a total amount for this column |
Based on the above assumptions, indicate whether the offer should
be accepted or rejected?
The offer select an optionshould not be acceptedshould be accepted should not be accepted should be accepted . |
Solution part 1:
The offer should be accepted.
Solution part 2:
The offer should not be accepted.
Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and ga...
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 20,300 Tri-Robos is as follows Cost Direct materials ($49 per robot) 5994,700 832.300 Direct labor $41 per robot) Variable overhead (55 per robot) Allocated fored overhead (530 per robot) 101.500 500.000 Total $2.528_500 Jobs is approached by Tinh Inc, which offers to make Tri-Robo for...
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.
Cost
Direct materials ($51 per robot)
$979,200
Direct labor ($38 per robot)
729,600
Variable overhead ($7 per robot)
134,400
Allocated fixed overhead ($31 per
robot)
595,200
Total
$2,438,400
Jobs is approached by Tienh Inc., which offers to make Tri-Robo...
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 Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) $1,040,000 832,000 124,800 603.200 Allocated fixed overhead ($29 per robot) Total $2,600,000 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for...
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 19,300 Tri-Robos is as follows. Cost Direct materials ($51 per robot) $984,300 Direct labor ($38 per robot) 733,400 Variable overhead ($6 per robot) 115,800 Allocated fixed overhead ($31 per robot) 598,300 Total $2,431,800 Jobs is approached by Tienh Inc., which offers to make Tri-Robo...
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. Cost Direct materials ($51 per robot) $979,200 Direct labor ($38 per robot) 729,600 Variable overhead ($7 per robot) 134,400 Allocated fixed overhead ($31 per robot) 595,200 Total $2,438,400 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for...
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 19,600 Tri-Robos is as follows. Cost $980,000 764,400 137,200 Allocated fixed overhead (31 per robot) 600,000 $2,481,600 Direct materials ($50 per robot) Direct labor ($39 per robot) Variable overhead ($7 per robot) Total Jobs is approached by Tienh Inc., which offers to make Tri-Robo for...
E7.6 (LO 3), E Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot can scan a home for fires and gas leaks and then transmit this information to a smartphone. The structure to manufacture 20,000 Tri-Robos is as follows. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached by Tienh Inc., which offers to make...
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 20-6 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 20,000 Tri-Robos is as follows. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached...
A1
A2
Help!
Question 3 Blue, 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 19,100 Tri-Robos is as follows. Cost Direct materials ($51 per robot) Direct labor ($41 per robot) Variable overhead ($5 per robot) Allocated fixed overhead ($31 per robot) $974,100 783,100 95,500 600,000 $2,452,700 Total Blue is approached by Tienh Inc., which...
Not sure how to do this, please
explain.
Exercise 12-6 (Part Level Submission) Ayayai, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan structure to manufacture 19,000 Tri-Robos is as follows. home for fires and gas leaks and then transmit this information to a smartphone. The cost Direct materials ($48 per robot) Direct labor ($38 per robot) Variable overhead ($5 per robot) Allocated fixed overhead ($32 per robot) Total Cost $912,000 722,000 95,000 600,000 $2,329,000...