-14 1 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 the 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 Direct labour ($30 per robot) 600.000 Variable overhead ($6 per robot) 120,000 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 4 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 preceding the number eg.-15.000 or parenthesis, eg. (15,000).) Net Income Increase