+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
The Abbott Corporation sells merchandise on the installment basis, and the uncertainties of cash collection make the use of the installment sales method of accounting accept
Discuss the key strengths of and key differences between random sampling, haphazard sampling, and judgement sampling and how those differences might affect the discussion in p
Shirley works in the human resource department at Turtle Shells, Inc. She believes she is seeing an increase in drinking problems among the workforce. She thinks she needs t
The property was also encumbered by a $50,000 nonrecourse debt, which was transferred to te partnership on that date. Another partner, Sylvia, shares 1/3 of the partnership
As of December 31, 2011, it is desired to distribute $488,000 in dividends. Insructions: How much will the preferred and common stockholders receive under the following assu
Colgate-Palmolive Company has just paid an annual dividend of $0.96. Analysts are predicting an 11% per year growth rate in earnings over the next five years.
Jackson Corporation has two service departments whose direct department costs are $75,000 and $10,000, respectively, and two producing departments whose direct department co
Income Distribution of a Partnership (Appendix) Louise Abbott and Buddie Costello are partners in a comedy club business. The partnership agreement specifies the manner in whi