Business, 07.09.2021 03:00 kookycookiefanx

An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to XYZ Corporation for this motor is $18. If XYZ Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. 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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