Exercise 7-6 a1-a2 (Video) Jobs, 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 21,000 Tri-Robos is as follows. Cost Direct materials ($49 per robot) Direct labor ($41 per robot) Variable overhead ($5 per robot) Allocated fixed overhead ($29 per robot) $1,029,000 861,000 105,000 609,000 $2,604,000 Total Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $113 per unit or $2,373,000. Following are independent assumptions. Your answer is partially correct. Try again. 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).) Net Income Increase (Decrease) Make Buy Direct materials 1029000 1029000 Direct labor 861000 861000 Variable overhead 105000 105000 X X Fixed overhead 609000 60000 375000 Purchase price 2373000 2373000 X x Total annual cost 2598000 3000 Using incremental analysis, determine whether Jobs should accept this offer. should be accepted The offer LINK TO TEXT VIDEO: SIMILAR EXERCISE Your answer is partially correct. Try again. Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs 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).) Net Income Increase (Decrease) Make Buy X Direct materials Direct labor x X Variable overhead X Fixed overhead indtil bottiti Initiili x Opportunity cost x Purchase price Totals Based on the above assumptions, indicate whether the offer should be accepted or rejected? should not be accepted v The offer Click if you would like to Show Work for this question: Open Show Work