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is allocated fixed overhead avoidable when we buy? 10- SY Telc has recently started the manufacture of RecRobo, a three-wheeled robot that can scan a

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is allocated fixed overhead avoidable when we buy?
10- SY Telc has recently started the manufacture of 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 RecRobo's is as follows. Cost Direct materials $40 Direct labor $30 Variable overhead $6 Allocated fixed overhead 25 Telc is approached by Chen Inc. which offers to make RecRobo for $90 per unit SY should accept this offer

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