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2) Snow-Fun-Company needs 1,000 motors in its manufacture of Snowmobiles. It can buy the motors from Jinx Motors for $1,050 each. Snow-Fun-Company's plant can manufacture
2) Snow-Fun-Company needs 1,000 motors in its manufacture of Snowmobiles. It can buy the motors from Jinx Motors for $1,050 each. Snow-Fun-Company's plant can manufacture the motors for the following costs per unit: $400 300 Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total 200 350 $1.250 If Snow-Fun-Company buys the motors from Jinx, 60% of the fixed manufacturing overhead applied will not be avoided Required: Should the company make or buy the motors? (show your work) a. b. What additional factors should Snow-Fun-Company consider in deciding whether or NOT to make or buy the motors
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