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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 transmit
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 19,900 Tri-Robos is as follows. Cost Direct materials ($49 per robot) $975,100 Direct labor ($39 per robot) 776,100 Variable overhead ($6 per robot) 119,400 Allocated fixed overhead ($30 per robot) 597,000 Total $2,467,600 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $113 per unit or $2,248,700. Following are independent assumptions. (a 1) Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials $ $ Direct labor Variable overhead Fixed overhead Purchase price Total annual cost $ $ Using incremental analysis, determine whether Jobs should accept this offer. The offer Save for Later Attempts: 0 of 3 used Submit
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