Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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 20,000 Tri-Robos is as follows.

Cost
Direct materials ($50 per robot) $1,000,000
Direct labor ($40 per robot) 800,000
Variable overhead ($6 per robot) 120,000
Allocated fixed overhead ($30 per robot) 600,000
Total $2,520,000

Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,300,000. (b) Describe the qualitative factors that might affect the decision to purchase the robots from an outside supplier.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions