Wildhorse, 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 20,000 Tri-Robos is as follows. Cost Direct materials ($48 per robot) $960,000 Direct labor ($40 per robot) 800,000 Variable overhead ($6 per robot) 120,000 Allocated fixed overhead ($30 per robot) 600,000 Total $2,480,000 Wildhorse is approached by Tienh Inc., which offers to make Tri-Robo for $113 per unit or $2,260,000. Following are independent assumptions. Net Income Increase (Decrease) Assume that $405,000 of the fixed overhead cost can be avoided. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials Direct labor A Variable overhead Fixed overhead Make Purchase price Total annual cost +A +A Buy +A +A A Using incremental analysis, determine whether Wildhorse should accept this offer. The offer Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Wildhorse can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials $ Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals Make $ Buy $ $ $ $ Net Income Increase (Decrease) Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offer