Question
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
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 21,200 Tri-Robos is as follows. Cost Direct materials ($51 per robot) $1,081,200 Direct labor ($42 per robot) 890,400 Variable overhead ($6 per robot) 127,200 Allocated fixed overhead ($28 per robot) 593,600 Total $2,692,400 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $117 per unit or $2,480,400. Following are independent assumptions. (a1) 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).)
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