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Author Question: Fairhaven Company needs 1,000 motors in its manufacture of boats. It can buy the motors from Asian ... (Read 104 times)

CQXA

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on: Mar 6, 2021
Fairhaven Company needs 1,000 motors in its manufacture of boats. It can buy the motors from Asian Motors for $1,250 each. Southwestern's plant can manufacture the motors for the following costs per unit: 

Direct materials$ 600
Direct manufacturing labor250
Variable manufacturing overhead200
Fixed manufacturing overhead350
Total$1,400

If Southwestern buys the motors from Jinx, 70% of the fixed manufacturing overhead applied will not be avoided. 

Required: 
a.  Should the company make or buy the motors?
b.  What additional factors should Southwestern consider in deciding whether or NOT to make or buy the motors?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by CQXA on Mar 6, 2021

lcapri7

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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CQXA

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

elyse44

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Reply 3 on: Yesterday
Excellent

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