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Total = $quad 2 , 5 2 0 , 0 0 0 Jobs is approached by Tienh Inc., which offers to make Tri - Robo

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Total
=$quad2,520,000
Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $115 per unit or $2,300,000
a) Using incremental analysis, determine whether Jobs should accept this offer under each of the following independent assumptions.
(1) Assume that $405,000 of the fixed overhead can be avoided.
\table[[Item,Make,Buy,Net Income Increase/(Decrease)],[,,,],[,,,],[,,,],[,,,],[,,,]]
Accept
Reject
(2) Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the released productive resources to generate an additional income of $375,000.
\table[[Item,Make,Buy,Net Income Increase/(Decrease)],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]
Accept
Reject
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