MT -14 E View Policies Current Attempt in Progress 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 manufacture 20,100 RecRobos is as follows: Cost Direct materials (5-45 per robot) $904,500 Direct labour ($27 per robot) 542,700 Variable overhead ($6 per robot) 120,600 Allocated fixed overhead ($26 per robot) 522.600 Total $2,090,400 SV Telc is approached by Chen Inc, which offers to make RecRobo for $80 per unit or $1.608.000 Using incremental analysis, determine whether SY Telc should accept this offer under each of the following independent assumptions (1) Assume that $341,700 of the fixed overhead cost is avoidable. (If an amount reduces the net income then enter with a negative sign preceding the number eg-15,000 or parenthesis, eg. (15,0001) 0 33 P de ww -14 E E Using incremental analysis, determine whether SY Telc should accept this offer under each of the following independent assumptions: (1) Assume that $341,700 of the foxed overhead cost is avoidable. If an amount reduces the net income then enter with a negative sign preceding the number eg-15,000 or parenthesis, eg (15,000) Net Income Increase (Decrease) Make Buy a C D .t O DOING Question 2 of 4 Should the offer be accepted? -14 E ME /4 E 1 (2) Assume that none of the fixed overhead is avoidable. However, if the robots are purchased from Chen Inc.5Y Telc can use the released productive resources to generate additional income of $241.700. (If an amount reduces the net income then enter with a negative sign preceding the number eg-15,000 or parenthesis, eg (15.0001) Net Income Increase (Decrease) Make Buy 33 900 200 #4 12 Question 2 of 4 SE Should the offer be accepted? eTextbook and Media C C $ 14 R LL S 85 P 6 T Y H G H O J 0 + 2 & U 24 J e D ? 8 16 FR K ( 9 O