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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

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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 this information to a smartphone. The cost structure to manufacture 20,000 Tri-Robos is as follows. Cost Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached by Tienh Inc., which offers to make Tri. Robo for $115 per unit or $2,300,000 Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc, Jobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using elther a negative sign preceding the number eg.-45 or parentheses e.g. (451) Net Income 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 20,000 Tri-Robos is as follows. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached by Tienhinc, which offers to make Tri Robo for $115 per unit or $2,300,000 Following are independent assumptions. Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses es. (45).) Net Income Increase (Decrease) Make Buy $ 1,000,000 Direct materials 1,000,000 i 0 0 800,000 Direct labor 800,000 120,000 0 120.000 Variable overhead 000 405,000 600.000 Fixed overhead 0 2.300,000 12,300,000) Purchase price $ 2.495,000 $ 2.520.000 25.000 Total annual cost Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number 03.-45 or parentheses es. (45)) Net Income Increase (Decrease) Make Buy 0 1,000,000 $ $ Direct materials 1,000,000 0 800,000 Direct labor 800,000 0 120.000 Variable overhead 120,000 i 0 0 Fixed overhead 0 (375,000) 375,000 Opportunity cost 0 Purchase price 12.300.000) (2.300.000) Totals 1.920,000 $ 15.000) 1.925,000

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