Pharoah, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks a then transmit this information to a smartphone. The cost structure to manufacture 20,600 Tri-Robos is as follows. Cost Direct materials ($52 per robot) $1,071,200 Direct labor ($40 per robot) 824,000 Variable overhead ($7 per robot) 144,200 Allocated fixed overhead ($29 per robot) 597,400 Total $2,636,800 Pharoah is approached by Tienh Inc., which offers to make Tri-Robo for $118 per unit or $2,430,800. Following are independent assumptions. Your answer is correct. 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 Direct materials Direct labor 1071200 824000 Variable overhead 144200 i Fixed overhead 597400 Purchase price SA Buy 192400 Net Income Increase (Decrease) 1071200 824000 144200 405000 2430800 i -2430800 Total annual cost 2636800 i 2623200 Using incremental analysis, determine whether Pharoah should accept this offer. The offer should be accepted 13600 Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Pharoah can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals Net Income Make Buy Increase (Decrease) Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer