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Vaughn 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

Vaughn 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: Direct materials ($41 per robot) Direct labour ($28 per robot) Variable overhead ($4 per robot) Cost $824,100 562,800 80,400 Allocated fixed overhead ($25 per robot) 502,500 Total $1,969,800 Vaughn is approached by Tri Town Inc., which offers to make RecRobo for $74 per unit or $1,487,400. Using incremental analysis, determine whether Vaughn 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 cible alment Syed carts shoulds Net Income Increase (Decrease) (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 e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, Irrelevant fixed costs should be included in both options when solving this problem.) Make Buy $ $ $ > Should the offer be accepted? (2) Assume th $ (2) Assume that none of the fixed overhead is avoidable. However, if the robots are purchased from Tri Town Inc., Vaughn 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, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be Included In both options when solving this problem.) Make Buy $ Net Income Increase (Decrease) Should the offer be accepted? $ $

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