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.

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

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Puckett Co. has office furniture that cost $75,000 and that has been depreciated $50,000. Record the disposal under the following assumptions.
The company has had over $300,000 in interest-bearing debt outstanding the third year, at a weighted average rate of 9 percent. How much interest for the third year is capit
On December 1, 2011, Barnum Company (a U.S. -based on company) entered into a three-month forward contract to purchase 1,000,000 ringgits on March 1, 2012. The following U.S
Fairfax Company had a balance in Deferred Tax Liability of $840 on December 31, 2014, resulting from depreciation timing differences. Make the income tax journal entry for th
Last Ltd incurred transaction costs of $97,749 in respect of this loan to arrange charges for security. Prepare the entries of Last Ltd to account for this loan from initial
The company requires a minimum pretax return of 15% on all investment projects. The net present value of the proposed project is closest to:
Write a 500-1,000-word essay describing the purpose of a trial balance and explain the difference between a trial balance and a balance sheet. Explain the concept of error-f
1) Using Excel's Regression package estimate a production function for Summit Farms which is of the form: q =a L3 + bL2. Provide the detailed regression output generated by Ex