Ivanhoe Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 13,200 of these toy pets is as follows: Direct materials ($35 per pet) $462,000 Direct labour ($29 per pet) 382,800 Variable overhead ($9 per pet) 118,800 Allocated fixed overhead ($23 per pet) 303,600 Total $1,267,200 Ivanhoe Pets is approached by Metlock Inc., which offers to make the toy pets for $84 per unit. Using incremental analysis, determine whether Ivanhoe Pets should accept this offer under each of the following independent assumptions: Prepare an incremental analysis. Assume that $118,800 of the fixed overhead cost in making 13,200 of the toy pets) is avoidable. (Enter savings 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.) Buy Cost (Saving) Make Cost TA $ $ $ 462000 Direct materials 382800 Direct labour v 118800 Variable overhead 118800 303600 Fixed overhead O Purchase price $ 1267200 ta $ TA Total annual cost ENG :)