Ivanhoe, 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 19,300 Tri-Robos is as follows. Cost Direct materials ($51 per robot) $984,300 Direct labor ($38 per robot) 733,400 Variable overhead ($6 per robot) 115,800 Allocated fixed overhead ($31 per robot) 598,300 Total $2,431,800 Ivanhoe is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,219,500. Following are independent assumptions. Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Direct materials Direct labor Variable overhead. Fixed overhead Purchase price Total annual cost Make Buy 984300 i 733400 115800 i 598300 i Using incremental analysis, determine whether Ivanhoe should accept this offer. The offer should be accepted 0 $ Net Income Increase (Decrease) 984300 733400 115800