Fairhaven Company needs 1,000 motors in its manufacture of boats. It can buy the motors from...

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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 labor 250 Variable manufacturing overhead 200 Fixed manufacturing overhead 350 Total $1,400 If Southwestern buys the motors from Jinx, 70% of the fixed manufacturing overhead applied will not be avoided. Required: 1. Should the company make or buy the motors? 2. What additional factors should Southwestern consider in deciding whether or NOT to make or buy the motors? Edit View Insert Format Tools Table 12pt Paragraph BIU BIUAT Da To B x 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 labor 250 Variable manufacturing overhead 200 Fixed manufacturing overhead 350 Total $1,400 If Southwestern buys the motors from Jinx, 70% of the fixed manufacturing overhead applied will not be avoided. Required: 1. Should the company make or buy the motors? 2. What additional factors should Southwestern consider in deciding whether or NOT to make or buy the motors? Edit View Insert Format Tools Table 12pt Paragraph BIU BIUAT Da To B x