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
Your research can contribute to theory on the relationship between smiling and happiness by addressing a) or b). Addressing c) is a completely different matter. c) involves
Prepare Dold's journal entries for the initial transaction, recognition of interest each year, and the collection of $35,843 at maturity. (Round answers to 0 decimal places,
For each independent situation above, prepare the appropriate journal entry for the redemption or conversion of the bonds. (For multiple debit/credit entries, list amounts f
Claude Chabot Bicycle, a small bicycle retailer located in Cookshire, was created 25 years ago by Mr. Chabot, a keen cyclist who wanted to offer both high-grade and low-grad
The bonds are sold on november 1, 2011 at 13 plus accrued interest. amortization was recorded when interest was received by the straight-line method. prepare all entries req
By automating the process, the company would save $108,000 per year in cash operating costs. The simple rate of return on the investment is closest to:
Leister Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $15,540. All sales are subject to a 5% sales tax. Comput
(General Inventory Issues) In January 2014, Susquehanna Inc. requested and secured permission from the commissioner of the Internal Revenue Service to compute inventories un