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Ivanhoe, 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
Ivanhoe, 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 19,300 Tri-Robos is as follows. Ivanhoe is approached by Tienh Inc, which offers to make Tri-Robo for $115 per unit or $2 , 219 , 500 : Following are independent assumptions. 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).) Using incremental analysis, determine whether Ivanhoe should accept this offer. The offer
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