Business
Business, 07.04.2020 05:00, wolfsaway

*Grouper, 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 19,600 Tri-Robos is as follows.

Cost
Direct materials ($50 per robot) $980,000
Direct labor ($39 per robot) 764,400
Variable overhead ($7 per robot) 137,200
Allocated fixed overhead ($31 per robot) 600,000
Total $2,481,600
Grouper is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,273,600.

Make assumptions and decide whether the offer should be accepted or rejected.

answer
Answers: 2

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*Grouper, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan...

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