1 corner click -> close pop up window (Press OK), then click SAVE on opening page CLICK HERE TO SAVE YOUR WORK 2 You must type your name and ID on the second sheet, otherwise the question will not be displayed correctly 3 Question 2 E-Card, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home 4 for fires and gas leaks and then transmit this information to a smartphone. > 5 6 7 8 9 10 11 12 13 The cost structure to manufacture 36,000 units of Tri-Robos is as follows. Cost Direct materials ($50 per robot) $1,800,000 Direct labor ($40 per robot) 1,440,000 Variable overhead ($6 per robot) 216,000 Allocated fixed overhead ($30 per 1,080,000 robot) Total costs $4,536,000 E-Card is approached by Tienhka Inc., which offers to make Tri-Robo for $115 Instructions Using incremental analysis, determine whether E-Card should accept this offer under each of the following independent assumptions. a) First, assume that $729,000 of the fixed overhead cost can be avoided. b) Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienhka Inc., E-Card can use the released productive resources to generate additional income of Difference Make Buy in NI (+ or -) per unit. 14 15 16 $ 675,000 17 18 19 1. Instructions READ ME FIRST 2. Your Name and ID Q1 Q2 Q3 Q4 Q5 Sheets