Exercise 7-6 (Part Level Submission) 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 20,600 Tri-Robos is as follows. Cost Direct materials ($52 per robot) $1,071,200 Direct labor ($40 per robot) 824,000 Variable overhead ($7 per robot) 144,200 Allocated fixed overhead ($29 per robot) 600,000 Total $2,639,400 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $118 per unit or $2,430,800. Following are independent assumptions. Collapse question part (a1) Correct answer. Your answer is correct. 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).

t (a2) 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).) 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? The offer .