Question 9 of 10 View Policies hal Banking a... BUS1601 WP -/1 E Current Attempt in Progress Tamarisk has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 20,000 RecRobos is as follows: Direct materials ($37 per robot) Cost $740,000 Direct labour ($27 per robot) 540,000 Variable overhead ($6 per robot) 120,000 Allocated fixed overhead ($26 per robot) 520,000 Total $1,920,000 Tamarisk is approached by Oak Inc., which offers to make RecRobo for $71 per unit or $1,420,000. Using incremental analysis, determine whether Tamarisk should accept this offer under each of the following independent assumptions: (1) Assume that $320,000 of the fixed overhead cost is avoidable. (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). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Buy Make Net Income Increase (Decrease) University Canada... Oxford Learner's Di... Nasco Staffing Solu... Able | Profile Personal Banking a... BUSI601 WP Wiley Course Question 9 of 10 < -/1 (1) Assume that $320,000 of the fixed over cost is avoidable. (If an amount reduces the net income then enter with a negative sign preceding the number eg. -15,000 or parenthesis, eg. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Should the offer be accepted? Make Buy $ $ $ $ $ $ Net Income Increase (Decrease) idable. However, if the robots are purchased from Oak Inc., Tamarisk can use the (2) Assume that none of the fixed ovehead is av ble. However, if the robots are purchased from Oak Inc., Tamarisk can use the released productive resources to generate additional income of $220,000. (If an amount reduces the net income then enter with a negative sign preceding the number eg. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) $ Make 69 Buy $ Net Income Increase (Decrease) $ $ $ Should the offer be accepted? eTextbook and Media Buscar G