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Auto Fast Company makes 40,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of

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Auto Fast Company makes 40,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity consists of Direct Materias Direct Labour Variable Manufacturing Overhead Fixed Marwfacturing Overhead $700 55,60 55.00 $4/45 An outside oppler recently began producing a comparable motor that could be used in the sewing machine. The price offered to AF Company for this motor is SAF Company decides not to make the motors, there would be no other use for the production facilities, and total fed factory overhead costs would not change, ir AF Company decides to continue making the motor how much higher or lower would net income be than if the motors are purchased from the outside oppler? Assume that direct labour a variable cost in this company Multiple Choice 524000 w S171.000 $276.000 592.000

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