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: Cost $740,000 540,000 Direct materials ($37 per robot Direct labour (527 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($26 per robot) Total 120.000 520,000 $1.920,000 Tamarisk is approached by Oak Inc. which offers to make RetRobo 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 8320,000 of the fored overhead cost is avoidable. Of an amount reduces the net income then enter with a negatives preceding the number eg. 15,000 or parenthesis, 8 (15,000). While alternate approaches are possible, irrelevant feed costs should be included in both options when solving this problem) Net Income Increase (Decrease) Make Buy (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 0.3 -15,000 or parenthesis es. (15,000 While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Net Income Increase (Decrease) Make Buy Should the offer be accepted? (2) Assume that none of the fixed overhead is avoidable. 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 es. -15,000 or parenthesis. es. (15.000! While alternate approaches are possible, irrelevant fixed costs should be Included in both options when solving this problem.) Net Income Increase Decrease) Make Buy