E7.21 (LO 3) SY Telc has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 20,000 RecRobos is as follows: Prepare an incremental analysis for the make-or-buy decision. Cost Direct materials ($35 per robot) $ 700,000 Direct labour ($30 per robot) 600,000 Variable overhead ($10 per robot) 200,000 Allocated fixed overhead ($25 per robot) 500,000 Total $2,000,000 SY Telc is approached by Chen Inc., which offers to make RecRobo for $80 per unit or $1.6 million. Instructions a. Using incremental analysis, determine whether SY Telc should accept this offer under each of the following independent assumptions: 1. Assume that $400,000 of the fixed overhead cost is avoidable. 2. Assume that none of the fixed overhead is avoidable. However, if the robots are purchased from Chen Inc., SY Telc can use the released productive resources to generate additional income of $200,000