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It's a question B of the same exercise I have asked: SY Telc has recently started the manufacture of RecRobo, a three-wheeled robot that can
It's a question B of the same exercise I have asked: SY Telc 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 20,000 RecRobos is as follows. Cost Direct materials ($40 per robot) $ 800,000 Direct labor ($30 per robot) 600,000 Variable overhead ($6 per robot) 120,000 Allocated fixed overhead ($25 per robot) 500,000 Total $2,020,000 SY Telc is approached by Chen Inc. which offers to make RecRobo for $90 per unit or $1,800,000. (b) Describe the qualitative factors that might affect the decision to purchase the robots from an outside supplier
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