\fMetlock is approached by Marx Inc., which offers to make RecRobo for $75 per unit or $1,500,000. Using incremental analysis, determine whether Metlock should accept this offer under each of the following independent assumptions: (1) Assume that $240,000 of the fixed overhead cost is avoidable. (If an amount reduces the net income then enter with a negative sig preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Net Income Increase Make Buy (Decrease) $ $ $ $ $ $(2) Assume that none of the fixed overhead is avoidable. However, if the robots are purchased from Marx Inc., Metlock can use the released productive resources to generate additional income of $140,000. (If an amount reduces the net income then enter with a negat sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Net Income Increase Make Buy (Decrease) $ $ $ $ $ $Metlock 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: Cost Direct materials ($41 per robot) $820,000 Direct labour ($33 per robot) 660,000 Variable overhead ($4 per robot) 80,000 Allocated fixed overhead ($20 per robot) 400,000 Total $1,960,000 Metlock is approached by Marx Inc., which offers to make RecRobo for $75 per unit or $1,500,000. Using incremental analysis, determine whether Metlock should accept this offer under each of the following independent assumptions: (1) Assume that $240,000 of the fixed overhead cost is avoidable. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.)