Current Attempt in Progress

Tamarisk 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 $20,000$ RecRobos is as follows:

Tamarisk is approached by Oak Inc., which offers to make RecRobo for $$71$ per unit or $$1,420,000.$

Using incremental analysis, determine whether Tamarisk should accept this offer under each of the following independent

assumptions:

$(1)$ Assume that $$320,000$ 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.$)$

Should the offer be accepted?