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 19,700 Tri-Robos is as follows. Cost Direct materials ($52 per robot) $1,024,400 Direct labor ($40 per robot). 788,000 Variable overhead ($7 per robot) 137,900 Allocated fixed overhead ($30 per robot) 591,000 Total $2,541,300 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $119 per unit or $2,344,300. 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).) Net Income Increase (Decrease) Make Buy Direct materials 1024400 i 0 1024400 Direct labor 788000 0 788000 137900 Variable overhead 137900 Fixed overhead 591000 186000 405000 Purchase price Total annual cost 2541300 Using incremental analysis, determine whether Jobs should accept this offer. The offer should be accepted 2344300 -2344300 2530300 11000 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 eg.-45 or parentheses eg. (45)) Make Direct materials $ Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals $ Buy $ Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer Net Income Increase (Decrease)