Question: Outsourcing ( Make - or - Buy ) Decision predicted cost per unit of an auto air purifier follows. Direct materials $ 8 . 0
Outsourcing MakeorBuy Decision predicted cost per unit of an auto air purifier follows.
Direct materials $
Direct labor
Factory overhead
Total $
These cost predictions include $ in facilitylevel fixed factory overhead averaged over units. assembles the motors.
Calculate the net advantage disadvantage of outsourcing the electric motors from Mini Motor Company
Use a negative sign with your answer to indicate a net disadvantage of outsourcing if applicable
$
b If it could otherwise rent the motorassembly space for $ per year, should it make or outsource this component?
Calculate the net advantage disadvantage of outsourcing the motors, assuming the space could be rented.
Use a negative sign with your answer to indicate a net disadvantage of outsourcing if applicable
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