25. The fine Co. Currently produces all of the components for its one product; an electric pencil sharpener. The unit cost of manufacturing the motor for the sharpener is: Direct materials $ 1.75 Direct labor $1.65 Variable overhead $0.75 Fixed overhead $0.60 The Co. Is considering the possibility of buying this motor from a subcontractor and has been quoted a prix sod $3.60 per uni. He relevant cost of manufacturing the motor to be considered in reaching the decision is: A. $4.75 B. $4.15 C. 3.55 D. 4.05 Q24: by choosing to go into business for himself, bob forgoes the possibility of getting a highly paid job with a large company. This is called: A. Sunk cost B. Out of pocket cost C. Opportunity cost D. Joint cost Q23: Obama Corp. is considering the purchase of a new machine costing $76,000 the machine would generate net cash inflows of $22.138 per yr. for 5 yrs. at the end of the 5 yrs the machine would have no salvage value l. Obamas cost of capital is 12%. Obama uses straight line depreciation. A. 12% B. 14% C. 16% D. 18%