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Business, 17.12.2021 01:20 uaodiase

A company makes 44,000 motors to be used in the production of its blender. The average cost per motor at this level of activity is: Direct materials $ 10.30 Direct labor $ 9.30 Variable manufacturing overhead $ 3.85 Fixed manufacturing overhead $ 4.80 An outside supplier recently began producing a comparable motor that could be used in the blender. The price offered to the company for this motor is $26.35. There would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:

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A company makes 44,000 motors to be used in the production of its blender. The average cost per moto...
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