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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
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. Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $118 per unit or $2,430,800. 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 e.g. 45 or parentheses e.g. (45).) Using incremental analysis, determine whether Jobs should accept this offer. The offer Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inch 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).) Based on the above assumptions, indicate whether the offer should be accepted or rejected
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