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Manal Elkhoshkhany
Manal Elkhoshkhany, Tutor
Category: Finance
Satisfied Customers: 9870
Experience:  More than 5000 online tutoring sessions.
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AE7-6 (a) 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 20,080 RecRobo's is as follows.            Cost        Direct materials ($40 per robot)     $803,200      Direct labor ($31 per robot)     622,480      Variable overhead ($5 per robot)     100,400      Allocated fixed overhead ($26 per robot)      522,080      Total      $2,048,160 Selleck is approached by Padong Inc. which offers to make RecRobo for $92 per unit or $1,847,360. Using incremental analysis, determine whether Selleck should accept this offer under each of the following independent assumptions. (If answer is zero, please enter 0. Do not leave any fields blank. If amount decreases the income, use either a negative sign preceding the number eg -45 or parentheses eg (45).) (1) Assume that $341,360 of the fixed overhead cost can be reduced (avoided).       Make       Buy       Net Income Increase (Decrease) Direct materials     $     $     $ Direct labor                Variable Overhead                Fixed Overhead                Purchase Price                  Total Annual Cost      $       $       $ Should the offer be accepted? (2) Assume that none of the fixed overhead can be reduced (avoided). However, if the robots are purchased from Padong Inc., Selleck can use the released productive resources to generate additional income of $341,360.       Make       Buy       Net Income Increase (Decrease) Direct materials     $     $     $ Direct labor                Variable Overhead                Fixed Overhead                Opportunity Cost                Purchase Price                  Totals      $       $       $ Should the offer be accepted? Yes or No



Please advise your deadline for this

Customer: replied 6 years ago.
Tuesday 2/8/10 by 6pm

Oh great, I will post by tomorrow afternoon max, it is just that I am in Egypt now and had no internet access for 8 days so I have a lot of pending questions


Thanks a million

Customer: replied 6 years ago.
OMG! Be careful there. There has been some crazy things going on there.
Yes, but not as bad as satellite channels are promoting anyway :) Until now, I am safe :) I will try to post the solutions before I am in any real danger :)
Customer: replied 6 years ago.
lol! Thanks :P

LOL, it really is very bad, but we'll see what will happen :)


Anyway, please click here for the solutions





Manal Elkhoshkhany and 2 other Finance Specialists are ready to help you
Customer: replied 6 years ago.
Great response! Thank you for your help.

Anytime :)


Wishing you all the best

Customer: replied 6 years ago.
will you be able to do a timed quiz for me. It will be a 10 question quiz, I am only given an hour to do.

hello bsl


Sure, but when are you planning to do that? Please advise the day and time (EST) and I will meet you here

Customer: replied 6 years ago.
Today at 9pm EST sound ok?

Sure :)


Here is what I suggest:



  • 1) At 9:00 make a new post and base your offer on the total number of questions that would be on the quiz. Please make sure to type "For BusinessTutor" at the beginning of your post, then type something like "Are you here?"..
  • 2) Do not open the quiz until I respond to your message, I will be here on time, but just in case anything happens I do not want us to waste valuable time.
  • 3) Once I respond to you, you can open the quiz, copy and paste all the questions into a word document then upload the word document into then copy and paste the share link on the post.
  • 4) I will work out all the questions and send you the solutions

see you

Customer: replied 6 years ago.
sweet sounds good

Ok, I will close this post then. Please do not reply to this message so that it does not get reopened. I am waiting for you online, so as you get online, please make a new post and post your questions, but remember to take the number of questions into consideration when you make your offer since this is a timed assignment and I do not want us to lose time if the amount offered does not compensate for the work involved.


See you :)