SY Tech 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: Per unit Direct materials $35 Direct labour 30 20,000 units $700,000 600,000 200,000 500,000 Variable overhead 10 Fixed overhead 25 SY Tech has received an offer from Chen Inc. which offers to make RecRobo for $80 per unit or $1.6 million. Required: 1. Determine whether SY Tech should accept this offer to buy the RecRobo under each of the following independent assumptions a) Assume that $400,000 of the fixed overhead is avoidable. Calculate the dollar advantage or disadvantage of buying the units. Show your calculations. What is your decision? b) Assume that none of the fixed overhead is avoidable. However, if the robots are purchased from Chen Inc. SY Tech can rent the factory space for $50,000. Calculate the dollar advantage or disadvantage of buying the units. Show your calculations. What is your decision? 2 Describe two qualitative factors that might affect the decision to buy the robots instead of manufacturing them