Crane, 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 $20,200$ Tri$-$Robos is as follows.

Direct materials $($$$48$ per robot$)$

Direct labor $($$$42$ per robot$)$

Variable overhead $($$$7$ per robot$)$

Allocated fixed overhead $($$$30$ per robot$)$

Total

Cost

$$969,600$

$848\mathrm{.}400$

$141,400$

$606\mathrm{.}000$

$$2,565\mathrm{.}400$

Crane is approached by Tienh Inc., which offers to make Tri$-$Robo for $$116$ per unit or $$2,343,200.$

Following are independent assumptions. Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Crane can use the

released productive resources to generate additional income of $$375,000.($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

Direct labor

Variable overhead

Fixed overhead

Opportunity cost

Purchase price

Totals

$

Based on the above assumptions, indicate whether the offer should be accepted or rejected?