Concord, 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 19,300 Tri-Robos is as follows.

		Cost
Direct materials ($51 per robot)		$984,300
Direct labor ($38 per robot)		733,400
Variable overhead ($6 per robot)		115,800
Allocated fixed overhead ($31 per robot)		598,300
Total		$2,431,800

Concord is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,219,500. 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 e.g. -45 or parentheses e.g. (45).)

		Make		Buy		Net Income Increase (Decrease)
Direct materials		$Enter a dollar amount		$Enter a dollar amount		$Enter a dollar amount
Direct labor		Enter a dollar amount		Enter a dollar amount		Enter a dollar amount
Variable overhead		Enter a dollar amount		Enter a dollar amount		Enter a dollar amount
Fixed overhead		Enter a dollar amount		Enter a dollar amount		Enter a dollar amount
Purchase price		Enter a dollar amount		Enter a dollar amount		Enter a dollar amount
Total annual cost		$Enter a total amount for this column		$Enter a total amount for this column		$Enter a total amount for this column

Using incremental analysis, determine whether Concord should accept this offer.

The offer Select an option should not be acceptedshould be accepted.