Sheridan, 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 20,700 Tri-Robos is as follows. Direct materials ($49 per robot) Direct labor ($42 per robot) Variable overhead ($5 per robot) Allocated fixed overhead ($29 per robot) Cost $1,014,300 869,400 103,500 600,300 $2,587,500 Total Sheridan is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,380.500. Following are independent assumptions. (a1) 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 eg.(45).) Make Net Income Increase (Decrease) Buy Direct $ 1014300 materials $ 0 $ 1014300 Direct labor 869400 0 869400 103500 0 103500 600300 i 195300 i 405000 Variable overhead Fixed overhead Purchase price Total annual cost 2380500 (2380500) 2587500 2575800 11700 Using incremental analysis, determine whether Sheridan should accept this offer. The offer should be accepted TU Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Sheridan can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the numberes.-45 or parentheses eg. (45).) Make Net Income Increase (Decrease) Buy Direct materials $ $ $ Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals $ Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer Blossom Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Blossom Street is considering finishing the bookcases and selling them for $71. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Blossom Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg.(45).) Sell Process Further Net Income Increase (Decrease) Sales price per unit $ $ Cost per unit Variable Fixed Total Net income per should be sold without further processing should be processed further The bookcases