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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
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 le transmit this information to a mobile phone. The cost structure to manufacture 20,000 RecRobos is as follows: Cost Direct materials ($47 per robot) $940,000 600,000 120,000 Direct labour ($30 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($26 per robot) Total 520,000 $2.180,000 SY Telc is approached by Chen Inc.. which offers to make RecRobo for $84 per unit or $1,680,000. Using incremental analysis, determine whether SY Telc should accept this offer under each of the following independent assumptions (1) Assume that $340,000 of the fixed overhead cost is avoidable. (If an amount reduces the net income then enter with a negative sign porenthesis.es. (15,000))
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