+1-415-670-9189
info@expertsmind.com
Selleck has recently started the manufacture of recrobo a
Course:- Accounting Basics
Reference No.:- EM13601443




Assignment Help
Assignment Help >> Accounting Basics

Selleck has recently started the manufacture of RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 19,940 RecRobo's is as follows.

Cost
Direct materials ($40 per robot $797,600
Direct labor ($33 per robot) 658,020
Variable overhead ($4 per robot) 79,760
Allocated fixed overhead ($23 per robot) 458,620
Total $1,994,000

Selleck is approached by Padong Inc. which offers to make RecRobo for $89 per unit or $1,774,660.Using incremental analysis, determine whether Selleck should accept this offer under each of the following independent assumptions.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
List of key Internal Control threats to the organisation and explain how the threat you have identified - A list of additional recommendations such as future features, or cha
When calculating debt to equity ratio: A) Convertible bonds should be treated as debt B) Convertible bonds should be excluded from debt but not included in equity
Seton Company manufactures a single product that sells for $360 per unit and whose total variable costs are $270 per unit. The company targets an annual after-tax income of
1.why are top management support and cross-functional involvement crucial when attempting to implement an activity-based costing system? 2. why is the activity-based costing
Waterfalls Corporation purchased a one-year insurance policy in January 2009 for $60,000. The insurance policy is in effect from March 2009 through February 2010. If the com
Adler Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2008, the first year of the corporation's existence:
Emu Company, which was formed in 2010, had operating income of $200,000 and operating expenses of $120,000 in 2010. In addition, Emu had a long-term capital loss of $10,000.
Conduct a review of relevant accounting principles related to mergers. Explain key components of the acquisition method of accounting. How does a consolidated firm report fi