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Exercise 7-6 (Part Level Submission) Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and
Exercise 7-6 (Part Level Submission) 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 20,900 obos is as follows. Cost Direct materials ($52 per robot) $1,086,800 877,800 Direct labor ($42 per robot) Variable overhead ($7 per robot) 146,300 Allocated fixed overhead ($29 per robot) 600,000 Total $2,710,900 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $119 per unit or $2,487,100 Following are independent assumptions
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