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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

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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 this information to a smartphone. The cost structure to manufacture 20,000 Tri-Robos is as follows Cost $1,000,000 Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead (530 per robot) 800,000 120,000 600,000 $2,520,000 Total Jobs is approached by Tinh Inc, which off to make Tri-Robo for $115 per unit or $2.300.000 Following are independent assumptions. Your Answer Correct Answer Your answer is partially correct Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sin preceding the 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 eg: (45).) Make Net Income Increase (Decrease) Buy Direct materials $ 1,000,000 $ $ 1.000.000 Direct labor 800,000 800,000 Variable overhead 120,000 1 120,000 Fixed overhead 600,000 195,000 405,000 Purchase price 1 2,300,000 i -2 300.000 Total annual cost $ 2.520,000 2.495.000 25.000 Using incremental analysis, determine whether Jobs should accept this offer. The offer should be accepted 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 eg: (45)) Net Income Increase (Decrease) Make Buy Direct materials 1,000,000 1.000.000 Direct labor 800,000 800,000 Variable overhead 120,000 i 120,000 Fixed overhead 600.000 600,000 i Opportunity cost 375.000 375,000 Purchase price 2,300,000 Totals 2,895.000 $ Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer should not be accepted

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