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 19,900 Tri-Robos is as follows.

Direct materials ($49 per robot)$975,100Direct labor ($39 per robot)776,100Variable overhead ($6 per robot)119,400Allocated fixed overhead ($30 per robot)597,000 Total$2,467,600

Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $113 per unit or $2,248,700. Following are independent assumptions.

(a1)

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).)

		enter direct materials in dollars		enter direct materials in dollars		enter direct materials in dollars
		enter direct labor in dollars		enter direct labor in dollars		enter direct labor in dollars
		enter variable overhead in dollars		enter variable overhead in dollars		enter variable overhead in dollars
		enter fixed overhead in dollars		enter fixed overhead in dollars		enter fixed overhead in dollars
		enter the purchase price in dollars		enter the purchase price in dollars		enter the purchase price in dollars
		enter total annual cost in dollars		enter total annual cost in dollars		enter total annual cost in dollars

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

select an option should be acceptedshould not be accepted