Prep are an incremen to! unolysisfor the make-or-buy decision. E74221 (LO 3 l SY Telc has recently started to manufacture RecRobo, a threewheeled robot that can scan a home for res and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 20,000 RecRobos is as follows: Cost Direct materials [335 per robot) S 700,000 Direct labour {330 per robot) 600,000 Variable overhead [$10 per robot) 200,000 Allocated xed overhead ($25 per robot) 500,000 Total $2,000,000 SY Telc is approached by Chen Inc., which offers to make RecRobo for $80 per unit or $1.6 million. Instructions a. Using incremental analysis, determine 1whether SY Telc should accept this offer under each of the following independent assumptions: 1. Assume that $400,000 of the xed overhead cost is avoidable. 2. Assume that none of the xed overhead is avoidable. However, if the robots are purchased from Chen Inc., SY Telc can use the released productive resources to generate additional income of $200,000. b. Describe the qualitative factors that might affect the decision to buy the robots from an outside supplier