Question 20 SY Telc has recently started to manufacture Recobo, a three-wheeled robot that can scan a home for fires and gas toals and then transmit this information to a mobile phone. The cost structure to manufacture 20,000 RecRobos is as follows: Direct materials ($38 per robot) Direct labour (34 per robot) Variable overhead (56 per mbot Allocated fixed overhead ($25 per root) Total Cost $760,000 680,000 120,000 500,000 $2.060,000 Sy Te is approached by Chen Inc. which offers to make RecRobo for 578 per unit of $1.560,000 Using incremental analysis, determine whether sy Tek should accept this offer under each of the following independent assumptions (1) Assume that $320,000 of the need overhead cost is avoidable. (If an amount reduces the net income then enter with a negative won preceding the number .. 15.000 or parenthesis, c.9. (15.000).) Net Income Increase (Decrease) Make Should the offer be accepted? (2) Assume that one of the fixed overhead is avoidable. However the robots are purchased from Chen Inc., SY Telc can use the released productive resources to generate additionat Income of $220,000. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).) Net Income Increase Make Buy (Decrease) Should the offer be accepted acture 20,000 RecRobos is as follows: a home f Direct labour Cost $760,000 680,000 120,000 500,000 $2,060,000 D) Variable overhead Total annual cost ich offers to make RecRobo for $78 per unit or $1,560,000. Direct materials whether SY Telc should accept this offer under each of the follo overhead cost is avoidable. (If an amount reduces the net Fixed overhead Purchase price Net Income Increase (Decrease) Buy -y Study Should the offer be accepted? URCES Fixed overhead Variable overhead Total annual cost Direct materials Opportunity cost Direct labour head is avoidable. However, if the robots are purchase educes the net income then enter with a negative Purchase price Net Income Increase (Decrease) Buy by Study Should the offer be accepted? LINK TO TEXT