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 Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,300,000 (b) Describe the qualitative factors that might affect the decision to purchase the robots from an outside suppler Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 51% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $ 3.74 and $4.69, respectively. Normal production is 31,700 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.04 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $46,900 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products (a) Prepare an incremental analysis to decide if Pottery Ranch should buy the finials. (Round answers to O decimal places, e.g. 1250. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.o. (415).) Make BUY Net Income Increase (Decrease) Direct materials 118558 118558 us Direct labor 148673 148673 Variable overhead costs 60465 60465 Fixed manufacturing costs 46900 46900 Purchase price T 413368 -413368 Total annual cost 374596 460268 -85672 Variable overhead costs 6046 60465 Fixed manufacturing costs 46900 46900 Purchase price T 413368 1113366 Total annual cost 37459 460268 -85672 (b) Should Pottery Ranch buy the finials? Pottery Ranch should not buy the finials Would your answer be different in (b) if the productive capacity released by not making the finals could be used to produce income of $76,6147