Crane Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 11,600 of these toy pets is as follows: Direct materials ($31 per pet) Direct labour ($28 per pet) $359,600 324,800 Variable overhead ($9 per pet) 104,400 Allocated fixed overhead ($23 per pet) 266,800 Total $1,055,600 Crane Pets is approached by Windsor Inc., which offers to make the toy pets for $81 per unit. Using incremental analysis, determine whether Crane Pets should accept this offer under each of the following independent assumptions: