SY Telc 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 manufacture19,900RecRobos is as follows:

Direct materials ($45 per robot) $895,500 Direct labour ($31 per robot) 616,900 Variable overhead ($8 per robot) 159,200 Allocated xed overhead ($23 per robot) 457,700 Total $2,129,300 SY Telc is approached by Chen Inc., which offers to make RecRobo for $83 per unit or $1,651,700. Using incremental analysis, determine whether SY Telc should accept this offer under each of the following independent assumptions: (1) Assume that $278,600 of the xed overhead cost is avoidable. (If an amount reduces the net income then enter with a negative sign preceding the number as. -15,000 or parenthesis, as. (15,000).) Direct materials V $ $ $ Direct labour V Variable overhead V Fixed overhead V Purchase price V Total annual cost V $ $ $ (2) Assume that none of the fixed 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 $178,600. (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) V $ $ $ V V V V $ $ $ Should the offer be accepted