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Bridgeport has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information

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Bridgeport has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 20,000 RecRobos is as follows: Bridgeport is approached by Richetti Inc., which offers to make RecRobo for $78 per unit or $1,560,000. Using incremental analysis, determine whether Bridgeport should accept this offer under each of the following independent assumptions: (1) Assume that $340,000 of the fixed overhead cost is avoidable. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Should the offer be accepted? (2) Assume that none of the fixed overhead is avoidable. However, if the robots are purchased from Richetti Inc., Bridgeport can use the released productive resources to generate additional income of $240,000. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Should the offer be accepted

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