Answer Happy

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 20,600 Tri-Robos is as follows. Cost Direct materials ($52 per robot) $1,071,200 Direct labor ($40 per robot) 824,000 Variable overhead ($7 per robot) 144,200 Allocated fixed overhead ($29 per robot) 597,400 Total $2,636,800 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $118 per unit or $2,430,800. Following are independent assumptions.

Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh 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 e.g.-45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials $ GA GA GA Direct labor Variable overhead Fixed overhead Opportunity cost HE JOONID Purchase price Totals $ $ $ GA Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer ✓