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 19,700 Tri-Robos is as follows. Cost Direct materials ($52 per robot) $1,024,400 Direct labor ($40 per robot) Variable overhead ($7 per robot) 788,000 137,900 600,000 $2,550,300 Allocated fixed overhead ($30 per robot) Total Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $119 per unit or $2,344,300.