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 20,900 Tri-Robos is as follows. Cost Direct materials ($52 per robot) $1,086,800 Direct labor ($42 per robot) 877,800 Variable overhead ($7 per robot) 146,300 Allocated fixed overhead ($29 per robot) 606,100 Total $2,717,000 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $119 per unit or $2,487,100. 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).)

		Make		Buy		Net Income Increase (Decrease)
Direct materials
Direct labor
Variable overhead
Fixed overhead
Purchase price
Total annual cost