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Exercise 12-6 Monty, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and
Exercise 12-6 Monty, 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 19,900 Tri-Robos is as follows. Cost $975,100 776,100 119,400 600,000 $2,470,600 Direct materials ($49 per robot) Direct labor ($39 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Monty is approached by Tienh Inc., which offers to make Tri-Robo for $113 per unit or $2,248,700 Following are independent assumptions
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