Question: Outsourcing ( Make - or - Buy ) Decision predicted cost per unit of an auto air purifier follows. Direct materials $ 8 . 0

Outsourcing (Make-or-Buy) Decision predicted cost per unit of an auto air purifier follows.
Direct materials $8.00
Direct labor ,1.50
Factory overhead 8.00
Total ,$17.50
These cost predictions include $60,000 in facility-level fixed factory overhead averaged over 10,000 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).
$
x
(b) If it could otherwise rent the motor-assembly space for $28,000 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).
 Outsourcing (Make-or-Buy) Decision predicted cost per unit of an auto air

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