=+2 If Scoot Ltd takes up Motor Mania’s offer, the facility where the motors are currently manufactured will be used to add a light and horn to the motorised scooter. This upgrade means that the scooters can be sold for an additional $20 premium. The variable cost per unit of the light and horn upgrade would be $18 and additional fixed costs of $8000 would be incurred. On the basis of financial considerations alone, should Scoot Ltd make or buy the motors, assuming that 5000 units are produced (and sold)?

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