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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 21,300 Tri-Robos is as follows. Cost $1,086,300 Direct materials ($51 per robot) 830,700 Direct labor (539 per robot) Variable overhead ($5 per robot) Allocated fixed overhead (528 per robot) 106,500 596,400 Total 52.619.900 Jobs is approached by Tienh Inc, which offers to make Tri Robo for $113 per unit or $2,406,900 Following are independent assumptions Assume that none of the food overhead can be avoided. However, if the robots are purchased from Tinh 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 es -45 or parentheseses (45) Net Income Increase (Decrease) Make Buy Direct materials S Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Total
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