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 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. Assume that $405,000 of the fixed overhead cost can be avoided. (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 Purchase price Total annual cost Make Buy Using incremental analysis, determine whether Pharoah should accept this offer. The offer Net Income Increase (Decrease)