Question: urrent Attempt in Progress SY Telc has recently started to manufacture RecRobo, a three wheeled robot that can scan a home for fires and gas
urrent 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 then transmit this information to a mobile phone. The cost structure to manufacture 20,000 RecRobos is as follows: Direct materials ($38 per robot) Direct labour ($33 per robot) Variable overhead ($5 per robot) Allocated fixed overhead ($22 per robot) Total Cost $760,000 660,000 100,000 440,000 $1,960,000 SY Telc is approached by Chen Inc., which offers to make RecRobo for $72 per unit or $1.440,000. Using incremental analysis, determine whether SY Telc should accept this offer under each of the following independent assumptions: (1) Assume that $240,000 of the fixed overhead cost is avoidable (If an amount reduces the net income then enter with a negative sign preceding the number es. -15,000 or parenthesis, es. (15,000))
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