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 20,500 Tri-Robos is as follows.

		Cost
Direct materials ($52 per robot)		$1,066,000
Direct labor ($38 per robot)		779,000
Variable overhead ($7 per robot)		143,500
Allocated fixed overhead ($29 per robot)		594,500
Total		$2,583,000

Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,378,000. 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		$		$		$

Using incremental analysis, determine whether Jobs should accept this offer.

The offer

should be acceptedshould not be accepted

.