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 mobile phone. The cost structure to manufacture 19,960 Tri-Robos is as follows. Cost Direct materials ($43 per robot) $858,280 Direct labor ($39 per robot) 778,440 Variable overhead ($7 per robot) 139,720 Allocated fixed overhead ($26 per robot) 518,960 Total $2,295,400 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $104 per unit or $2,075,840.