Oriole, 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 19,400 Tri-Robos is as follows. Cost Direct materials ($49 per robot) Direct labor $37 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($31 per robot) Total $950,600 717,800 116,400 601,400 $2,386,200 Oriole is approached by Tienh Inc., which offers to make Tri-Robo for $112 per unit or $2,172,800. Following are independent assumptions. (a 1) 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).) preceding the number e.s. -45 or parentheses e.s. (45)) Net Income Increase (Decrease) Make Buy Direct materials $ $ $ Direct labor Variable overhead Fixed overhead Purchase price Total annual cost $ $ Using incremental analysis, determine whether Oriole should accept this offer. The offer e Textbook and Media Save for Later Attempts: 0 of 3 used Submit