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Business, 13.11.2019 23:31 stinematesa

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.

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