Marigold, inc. has recently started the manufacture of tri-rob, a three wheeled robot that can...
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Marigold, inc. has recently started the manufacture of tri-rob, a three wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19,700 tri-robos is as follows.
Question 3 Marigold, Inc. has recently started the manufacture of TrI-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this inform to a smartphone. The cost structure to manufacture 19,700 Tri-Robos is as follows Cost Direct Direct labor ($40 per robot) Variable overhead ($7 per robot) Allocated fixed overhead ($30 per robot) $1,024,400 788,000 37,900 600,000 $2,550,300 Total Marigold is approached by Tienh Inc., which offers to make Tri-Robo for $119 per unit or $2,344,300. Prepare an incremental analysis. Assume that $405,000 of the fixed overhead cost can be avoided. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Fixed overhead
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