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Carla Vista, 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

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Carla Vista, 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 19,800 Tri-Robos is as follows. Cost $1,009,800 792,000 Direct materials ($ 51 per robot) Direct labor ($ 40 per robot) Variable overhead ($ 6 per robot) Allocated fixed overhead ($ 30 per robot) 118,800 594,000 Total $ 2,514,600 Carla Vista is approached by Tienh Inc., which offers to make Tri-Robo for $ 116 per unit or $ 2.296,800. 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 eg. -45 or parentheses eg. (45).) Net Income Increase (Decrease) Make Buy Direct materials 1,009.800 0 1,009,800 Direct labor 792,000 0 792,000 Variable overhead 118,800 0 118,800 Fixed overhead 594,000 189,000 405.000 0 Purchase price -2.296,800 2.296,800 A $ 28,800 2.485,800 $ 2,514,600 Total annual cost Using incremental analysis, determine whether Carla Vista should accept this offer. The offer should be accepted Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc, Carla Vista can use the released productive resources to generate additional income of $ 375,000. (Enter negative amounts using either a negative slon preceding the number 0.9.-45 or parentheses es. (451) Net Income Increase (Decrease) Make Buy Direct materials $ $ Direct labor Variable overhead Fixed overhead LLA Opportunity cost Purchase price $ $ Totals $ Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer e Textbook and Media

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