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BACK Exercise 7-6 obs, Inc. has recently started the manufacture of Tri-Robo, a three wheeled robot that can scan a home for fires and gas

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BACK Exercise 7-6 obs, 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 20,900 Tri-Robos is as follows: Direct materials (552 per robot) Direct labor (542 per robot) Variable overhead ($7 per robot) Allocated fixed overhead ($29 per robot) Total Cost $1,086,800 877,800 146,300 600,000 $2,710,900 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $119 per unit or $2.487,100. Following are independent assumptions: Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number .. 45 or parentheses 9. (45).) Net Income Increase Make Buy (Decrease) Direct materials 5 Direct labor Variable overhead PM Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number egas or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials Direct labor Variable overhead Fixed overhead Purchase price Total annual cont Using Incremental analysis, determine whether Jobs should accept this offer. The offer Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tinh Inc., Jobs can use the released productive resources to generate additional income of $375,000 (Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses (45).) Net Income Increase (Decrease) Make Buy $ Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals Based on the above assumptions, indicate whether the otfer should be accepted or rejected? The offer

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