Assume that none of the fixed overhead can be reduced

Reference no: EM13601540

Assume that none of the fixed overhead can be reduced (avoided) However, if the robots are purchased from Padong Inc. Selleck can use th released productive resources to generate additional income of $321,600.

Selleck has recently started the manufacture of RecRobo, a three wheeled robot that can scan ahome for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 20,100 RecRobo's is as follows.

Direct materials ( $40 per robot) $804,000
Direct labor ($30 per robot) 603,000
Variable overhead ($4 per robot ) 80,400
Allocated fixed overhead ($25 per robot) 502,500
Total 1,989,900

Selleck is approached by Padong Inc. which offers to make RecRobo for $89 per unit or $1,788,900. Use incremental analysis determine whether Selleck should accept this offer under each of the following independent assumptions.
Make buy net income increase/decrease

Direct materials
Direct labor
Variable overhead
Fixed overhead
Opportunity cost
Purchase price
Totals
Should offer be accepted

Reference no: EM13601540

Questions Cloud

Travis corporation offers gruner 484 per disc for 5300 : materials 10896labor 33369variable overhead 21792fixed overhead 45400total 111457gruner also incurs 6 sales commission

The cgs unit for measuring the viscosity of a liquid is the : the cgs unit for measuring the viscosity of a liquid is the poise p 1 p 1 gsmiddotcm. the si unit for viscosity is the

Lomax enterprises purchased a depreciable asset for 26000 : lomax enterprises purchased a depreciable asset for 26000 on march 1 year 1. the asset will be depreciated using the

Cost-plus time and materials ethics r amp c mechanical : cost-plus time and materials ethics. r amp c mechanical sells and services plumbing heating and air conditioning

Assume that none of the fixed overhead can be reduced : assume that none of the fixed overhead can be reduced avoided however if the robots are purchased from padong inc.

Calculate athe heat lost by the oil and the cooling water : hot oil cp2.3 kjkg.c at a rate of 2.5 kgs enters an adiabatic exchanger at 180 c and leaves at 150 c. cooling water

Write a nuclear reaction for the neutron-induced fission of : write a nuclear reaction for the neutron-induced fission of u-235 to produce te-137 and zr-87? how many neutrons are

The mean diameters of x and y two planets in the same solar : question the mean diameters of x and y two planets in the same solar system are 6.4 x 103 km and 1.2 x 104 km

Calculate athe mass of the air that has entered the tank : a 1-m3 rigid tank initially contains air at 150 kpa 300 k. the tank is connected through a valve to a supply line at

User Account

All Pages