JOB inc. has recently started the manufacture ofTriRobo, a three-wheeled robotthat can scan a home for fires and gas leaks and then transmit this information to a mobile phone.The cost structure to manufacture19980 TriRobosis as follows

.Cost

Direct materials ($48 per robot) $ 959040

Direct labor ($41 per robot) 819180

Variable overhead ($7 per robot) 139860

Allocated fixed overhead ($23 per robot) 459540

Total $2377620

Job Inc. is approached by Tulsa Inc. which offers to makeTriRobo for $1 per unitor$2137860

.(a) Using incremental analysis, determine whether Security Co. should accept this offer undereach of the following independent assumptions.

(1) Assume that$259740 of the fixed overhead cost can be reduced(avoided)