Blossom, 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 20,100 Tri-Robos is as follows.

		Cost
Direct materials ($51 per robot)		$1,025,100
Direct labor ($40 per robot)		804,000
Variable overhead ($6 per robot)		120,600
Allocated fixed overhead ($30 per robot)		603,000
Total		$2,552,700

Blossom is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,331,600. Following are independent assumptions.

Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh 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 e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals $L