Question: Current Attempt in Progress Coronado has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and

 Current Attempt in Progress Coronado has recently started to manufacture RecRobo,

Current Attempt in Progress Coronado 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 19,900 RecRobos is as follows: Coronado is approached by Runner Inc., which offers to make RecRobo for $78 per unit or $1,552,200. Using incremental analysis, determine whether Coronado should accept this offer under each of the following independent assumptions: (1) Assume that $238,800 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.)

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