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Jobs, 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
Jobs, 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 information to a smartphone. The cost structure to manufacture 19,500 Tri-Robos is as follows. Direct materials ($48 per robot) Direct labor ($39 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($31 per robot) Total Cost $936,000 760,500 117,000 604,500 $2,418,000 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $113 per unit or $2,203,500. Following are independent assumptions. (a2) Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals $ The offer $ Make $ $ Buy Net Income Increase (Decrease) $ $ Based on the above assumptions, indicate whether the offer should be accepted or rejected? By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER
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