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Job 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
Job 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 20,000 Tri-Robo is as follows: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead 50.00 per unit 40.00 per unit 6.00 per unit 30.00 per unit Jobs has been approached by Tienh Inc. to sell these Tri-Robo for $115.00 per unit and buying these Tri-Robo instead of manufacturing them will save $405,000 of fixed manufacturing costs. Should Jobs Inc. continue to make the Tri-Robo or purchase from Tienh Inc.? Using the appropriate template and complete the problem and answer the question. (check figure: total cost to buy = $2,520,000.00)
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