LINK TO TEXT Based on the above assumptions indicate whether

LINK TO TEXT

Based on the above assumptions, indicate whether the offer should be accepted or rejected?

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 19,100 Tri-Robos is as follows:

		Cost
Direct materials ($51 per robot)		$974,100
Direct labor ($41 per robot)		783,100
Variable overhead ($5 per robot)		95,500
Allocated fixed overhead ($31 per robot)		600,000
Total		$2,452,700

Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $117 per unit or $2,234,700.

Following are independent assumptions:

$\"\"$

1a) Calculate total cost :

b) The offer should be accepted

2a) Calculate total cost :

b) The offer should not be accepted

	Make	Buy	Net income increase (decrease)
Direct material	974100		974100
Direct labour	783100		783100
Variable overhead	95500		95500
Fixed overhead	600000	195000	405000
Purchase price		2234700	-2234700
Total	2452700	2429700	23000

LINK TO TEXT Based on the above assumptions, indicate whether the offer should be accepted or rejected? Jobs, Inc. has recently started the manufacture of Tri-R

LINK TO TEXT Based on the above assumptions indicate whether

Solution

Get Help Now

Submit a Take Down Notice