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) Cost $969,600 Direct labor ($42 per robot) 848,400 Variable overhead ($7 per robot) 141,400 Allocated fixed overhead ($30 per robot) 606,000 Total $2,565,400 Crane is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,343,200. Following are independent assumptions. Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals Make 969600 848400 141400 Hi Buy A 606000 606000 -375000 2203500 Net Income Increase (Decrease) +A 969600 848400 141400 375000 -2203500 $ 2565400 $ 2434500 $ 130900