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. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated foxed overhead ($30 per robot) Total Direct material Direct labor Variabile overhead Fed overhead Cost Jobs is approached by Tienh Inc, which offers to make Tri-Robo for $115 per unit or $2,300,000 Following are Independent assumptions Purchase price $1.000.000 800,000 Assume that $405,000 of the foxed overhead cost can be avoided. (Enter negative amounts using either a negative sin preceding the mumber a 45 or parentheses (45)) Make 120,000 600,000 $2,520,000 Buy Net Income Increase (Decrease
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. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated foxed overhead ($30 per robot) Total Direct material Direct labor Variabile overhead Fed overhead Cost Jobs is approached by Tienh Inc, which offers to make Tri-Robo for $115 per unit or $2,300,000 Following are Independent assumptions Purchase price $1.000.000 800,000 Assume that $405,000 of the foxed overhead cost can be avoided. (Enter negative amounts using either a negative sin preceding the mumber a 45 or parentheses (45)) Make 120,000 600,000 $2,520,000 Buy Net Income Increase (Decrease
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Direct materials ($50 per robot)
Direct labor ($40 per robot)
Variable overhead ($6 per robot)
Allocated foxed overhead ($30 per robot)
Total
Direct material
Direct labor
Jobs is approached by Tienh Inc, which offers to make Tri-Robo for $115 per unit or $2,300,000
Following are independent assumptions
Variabile overhead
Assume that $405,000 of the foxed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the
mumber a 45 or parentheses es (45))
Fled overhead
Purchase price
Cost
S
$1.000.000
800,000
120,000
Make
600,000
$2,520,000
Buy
Net Income
Increase
(Decrease)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c1026a2-02ce-4304-90fa-ce2f48f45210%2Faf6a3427-98de-4365-b9cc-1753d301e41f%2Fgkg7hz_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
Direct materials ($50 per robot)
Direct labor ($40 per robot)
Variable overhead ($6 per robot)
Allocated foxed overhead ($30 per robot)
Total
Direct material
Direct labor
Jobs is approached by Tienh Inc, which offers to make Tri-Robo for $115 per unit or $2,300,000
Following are independent assumptions
Variabile overhead
Assume that $405,000 of the foxed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the
mumber a 45 or parentheses es (45))
Fled overhead
Purchase price
Cost
S
$1.000.000
800,000
120,000
Make
600,000
$2,520,000
Buy
Net Income
Increase
(Decrease)
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