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 none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs 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).)

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