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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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.
Following are independent assumptions.

(A2) 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).)

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