5) Pharoah, Inc. has recently started the manufacture of Tri-Robo...

Please answer (a2) :)

Pharoah, 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 20,600 Tri-Robos is as follows. Pharoah is approached by Tienh Inc., which offers to make Tri-Robo for $118 per unit or $2,430,800. Following are independent assumptions: Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negotive amounts using either a negative sign preceding the number es -45 or parentheses eg. (45).) Using incremental analysis, determine whether Pharoah should accept this offer. The offer Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Pharoah can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number es. -45 or porentheses e.g. (45).) Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offe