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: Direct materials ($47 per robot) Direct labour ($25 per robot) Variable overhead ($4 per robot) Cost $940,000 500,000 80,000 Allocated fixed overhead ($25 per robot) 500,000 Total $2,020,000 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.) Make Total annual cost $ Buy 9.76% $ $ 2700 $ $ $ Net Income Increase (Decrease)