Please do not give solution in image format thanku (a2)Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use thereleased productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative signpreceding the number e.g. -45 or parentheses eg. (45).)Direct materialsDirect laborVariable overheadFixed overheadOpportunity costPurchase priceTotalsMakeThe offerGABuyCLASSBased on the above assumptions, indicate whether the offer should be accepted or rejected?Net IncomeIncrease(Decrease) Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks andthen transmit this information to a smartphone. The cost structure to manufacture 20,700 Tri-Robos is as follows.Direct materials ($49 per robot)Direct labor ($42 per robot)Variable overhead ($5 per robot)Allocated fixed overhead ($29 per robot)TotalCost$1,014,300869,400103,500600,300$2,587,500Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,380,500.Following are independent assumptions.

The differential analysis is performed to compare the different alternatives available with the…

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 eg.-45 or parentheses eg. (45).) Make Buy Net Income Increase (Decrease)

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 eg.-45 or parentheses eg. (45).) Make Buy Net Income Increase (Decrease)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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