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. (b) Describe the qualitative factors that might affect the decision to purchase the robots from an outside supplier.

It is important to consider only the relevant cost i.e. those cost which will not be incurred if a particular decision is made and will incur if the other option is chosen.

Part A

Purchasing the product would result in saving of $25000, if the fixed overhead of $405000 can be avoided.

The Relevant cost of manufacturing the product and the purchase price are as computed below in the second image.

Part B

Making the product would result in saving of $5000.

tnichols732 tnichols732 · Answer 2 · 2020-10-21T19:51:21+02:00

tnichols732 tnichols732

21-10-2020

Answer:

tri care

Explanation:

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