Jobs Inc has recently started the manufacture of Tri Roba a

Last updated: 3/4/2023

Jobs Inc has recently started the manufacture of Tri Roba a three wheeled robot that can scan a home for fires and gas leaks and than transmit this information to a smartphone The cost structure to manufacture 21 400 Tri Robos is as follows Direct materials 52 per robot Direct labor 39 per robot Variable overhead 5 par robot Allocated fored overhead 28 per robot Total a1 Jobs is approached by Tienh Inc which offers to make Tri Rabo for 114 per unit or 2 439 600 Following are independent assumptions Direct materials Direct labor 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 Variable overhead Fixed overhead Cost 1 112 800 Purchase price 834 600 Make 107 000 599 200 2 653 600 Buy Net Income Increase Decrease