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Question 3 of 10 < > Current Attempt in Progress -/2 E Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot
Question 3 of 10 < > Current Attempt in Progress -/2 E 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 21,400 Tri-Robos is as follows. Cost Direct materials ($52 per robot) $1,112,800 Direct labor ($39 per robot) Variable overhead ($5 per robot) 834,600 107,000 Allocated fixed overhead ($28 per robot) 599.200 Total $2,653,600 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $114 per unit or $2,439,600. Following are independent assumptions. Question 3 of 10 < > (a1) -/2 E! 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 e.g. (45).) Make Buy Direct materials $ $ $ Direct labor Variable overhead Fixed overhead Purchase price Total annual cost $ $ $ Net Income Increase (Decrease) Question 3 of 10 < > Fixed overhead Purchase price Total annual cost $ $ Using incremental analysis, determine whether Jobs should accept this offer. The offer
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