Buddy Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 13,200 of these toy pets is as follows: Direct materials ($35 per pet) | | $462,000 | | Direct labour ($29 per pet) | | 382,800 | | Variable overhead ($9 per pet) | | 118,800 | | Allocated fixed overhead ($23 per pet) | | 303,600 | | Total | | $1,267,200 | | Buddy Pets is approached by Maxum Inc., which offers to make the toy pets for $84 per unit. Using incremental analysis, determine whether Buddy Pets should accept this offer under each of the following independent assumptions: | | | |