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10 pts Question 3 Your Company makes 25.000 motors to be used in the production of its sewing machines The cost per motor at this

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10 pts Question 3 Your Company makes 25.000 motors to be used in the production of its sewing machines The cost per motor at this level of activity is Direct materials $4.50 Direct labor $4.60 Variable manufacturing overhead $3.75 Fixed manufacturing overhead $3,40 An outside supplier has offered to supply all the motors the company needs for $15 each. If Your Company decides to buy the motors, there would be no other use for the production facilities and 35% of the fixed manufacturing overhead cost could not be avoided. If Your Company decides to buy the motor, what is the change in net income net operating income? O $1,500 (51,500) $24,000 O ($24,000) 531,250

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