Pharoah, 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 asmartphone The cost structure to manufacture $20,600$ Tri$-$Robos is as follows.

Pharoah is approached by Tienh Inc, which offers to make Tri$-$Robo for $$118$ per unit or $$2,430,800.$

Following are independent assumptions.

$($a$1)(45)$

Make

Direct materials

Direct labor

Variable overhead

Fixed overhead

Purchase price

Total annual cost

Using incremental analysis, determine whether Pharoah should accept this offer:

The offer diould te scceptod