Question 10 Cheyenne, 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 19,400 Tri-Robos is as follows.     Cost   Direct materials ($49 per robot)   $950,600   Direct labor ($37 per robot)   717,800   Variable overhead ($6 per robot)   116,400   Allocated fixed overhead ($31 per robot)   600,000       Total   $2,384,800   Cheyenne is approached by Tienh Inc., which offers to make Tri-Robo for $112 per unit or $2,172,800. Following are independent assumptions.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Question 10

Cheyenne, 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 19,400 Tri-Robos is as follows.

    Cost  
Direct materials ($49 per robot)   $950,600  
Direct labor ($37 per robot)   717,800  
Variable overhead ($6 per robot)   116,400  
Allocated fixed overhead ($31 per robot)   600,000  
    Total   $2,384,800  

Cheyenne is approached by Tienh Inc., which offers to make Tri-Robo for $112 per unit or $2,172,800.

Following are independent assumptions.
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